Self Employment & Tier1

[dima]

Hiya!!

I am planning to register myself with HMRC this May 2010 as self employed( IT Contracts). I checked the procedure online & seemed to be quite simple. However, I am not able to get the Class2 NI contribution part.
1.What is Class 2 NI contribution and How much I need to pay HMRC in a year?Do I get any bils from HMRC?
I also saw that we can register as SEE ( income below 5074 GBP need not pay class2 NI ). Once we get SEE that my earning may not reach this threhold in the next fin year, what if I happen to earn more say during the last 2 months of the financial year?
Can anyone with the experience guide me how do I start my self employemet and what are the pre-requisites?

2. Suppose, If I use this earnigs for my Tier1 extension and what are the docs I need to submit with the HO.

Tx all

[frrana]

Hiya!!

I am planning to register myself with HMRC this May 2010 as self employed( IT Contracts). I checked the procedure online & seemed to be quite simple. However, I am not able to get the Class2 NI contribution part.
1.What is Class 2 NI contribution and How much I need to pay HMRC in a year?Do I get any bils from HMRC?

Ans: Class 2 NI are paybale every week. They roughly range between 2.50 to 3.00 pounds a week (I forgot how much it was exactly, may £2.80). You can pay these weekly, quaterly, yearly. I pay them yearly.

I also saw that we can register as SEE ( income below 5074 GBP need not pay class2 NI ). Once we get SEE that my earning may not reach this threhold in the next fin year, what if I happen to earn more say during the last 2 months of the financial year?

Ans: I also got SEE. But when I workd self employed for 8 months I breached the SEE limit. So I had to contact the HMRC and say to them that I want to pay the Class 2 NI. They asked me when you want to start. I could have said from today since I breached the SEE limit today but I decided to pay the whole year Class 2 NI. Because I had tier 1 caseworker in my mind. I wanted to keep things as straight as possible.


Can anyone with the experience guide me how do I start my self employemet and what are the pre-requisites?

Ans: Register with HMRC. Then you can either pay taxes online or by Post. Pay Class2 NI if you exceed the SEE limit. If your income exceed a certain limit then you also pay another class of NI which is 8% I guess. I can't remember exactly. But I can look into this tommorrow and let you know.

2. Suppose, If I use this earnigs for my Tier1 extension and what are the docs I need to submit with the HO.

Ans: This question is my problem as well. I am asking people on this baord and got very helpful messages. You can look into my posts for detail.




Tx all

[dima]

Hiya!!

I am planning to register myself with HMRC this May 2010 as self employed( IT Contracts). I checked the procedure online & seemed to be quite simple. However, I am not able to get the Class2 NI contribution part.
1.What is Class 2 NI contribution and How much I need to pay HMRC in a year?Do I get any bils from HMRC?

Ans: Class 2 NI are paybale every week. They roughly range between 2.50 to 3.00 pounds a week (I forgot how much it was exactly, may £2.80). You can pay these weekly, quaterly, yearly. I pay them yearly.

I also saw that we can register as SEE ( income below 5074 GBP need not pay class2 NI ). Once we get SEE that my earning may not reach this threhold in the next fin year, what if I happen to earn more say during the last 2 months of the financial year?

Ans: I also got SEE. But when I workd self employed for 8 months I breached the SEE limit. So I had to contact the HMRC and say to them that I want to pay the Class 2 NI. They asked me when you want to start. I could have said from today since I breached the SEE limit today but I decided to pay the whole year Class 2 NI. Because I had tier 1 caseworker in my mind. I wanted to keep things as straight as possible.


Can anyone with the experience guide me how do I start my self employemet and what are the pre-requisites?

Ans: Register with HMRC. Then you can either pay taxes online or by Post. Pay Class2 NI if you exceed the SEE limit. If your income exceed a certain limit then you also pay another class of NI which is 8% I guess. I can't remember exactly. But I can look into this tommorrow and let you know.

2. Suppose, If I use this earnigs for my Tier1 extension and what are the docs I need to submit with the HO.

Ans: This question is my problem as well. I am asking people on this baord and got very helpful messages. You can look into my posts for detail.




Tx all

Tx Frrana for your reply.
some more queries...
If we breach SEE, do we have to pay Class 2 NI for entire amount OR for the amount after threshold amount 5500gbp. ex: If I earn 10000gbp in the fin year and I have my SEE. Is it that I need to pay NI from the month we exceed SEE OR entire fin year?

Can you pls tell me what is the min class2 NI we need to pay, if we exceed SEE? Is the Clas2 NI a fixed amount?