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Should I pay Class 2 NIC voluntarily?

Should I pay class 2 NIC voluntarily

Entitlement to the state pension and certain contributory benefits depends on an individual having paid, or been credited with, sufficient National Insurance contributions. To qualify for the full single-tier state pension, an individual needs 35 qualifying years. A reduced state pension is paid where a person has less than 35 qualifying years, but at least … Read more

Changes to National Insurance for the self-employed

Increase in Class 2 NICs and impact on self-employed

If their profits are high enough, the self-employed pay two classes of National Insurance contribution – Class 2 and Class 4. Class 2 contributions are flat rate contributions of £3.15 per week for 2022/23. It is the payment of Class 2 contributions that enables a self-employed earner to build up entitlement to the state pension … Read more

National Insurance changes from July 2022

National Insurance

Although the National Insurance rates and thresholds for 2022/23 had already been set, at the time of the Spring Statement in March 2022, the Chancellor announced increases in the primary threshold which would align the starting point for National Insurance with the personal allowance from 6 July 2022. However, as the increase does not take … Read more

Limited time penalty waivers for your 2020/21 tax return

penalty waivers for 2020/21 tax returns

Didn’t manage to file your tax return by the deadline of the 31st of January?  Don’t panic! To help taxpayers and advisers affected by the surge in Covid-19 cases as a result of the Omicron variant, penalty waivers will apply for a limited time where the 2021/22 tax return is filed late or where tax … Read more

Struggling to pay tax – What should you do?

struggling to pay tax

The January self-assessment payment deadline is not well timed, falling as it does in a month when people may be already struggling to pay their Christmas credit card bills. However unpalatable the 31 January tax deadline is, it is not one that should be ignored. Taxpayers who are within self-assessment will need to pay any … Read more

Thinking of starting a business but not sure when you’d be classed as trading?

Are you trading?

Trading income is taxed for both income tax and corporation tax purposes. In order for a tax charge to arise under the trading income rules, there must be a trade. It is, therefore, necessary to understand what constitutes trading, and when a trade commenced or ceased. Indicators of trade To determine whether a trade exists, … Read more

Further grants for the self-employed

self employed grants

The Self-Employment Income Support Scheme (SEISS) has provided grant support for self-employed individuals whose business has been adversely affected by the Covid-19 pandemic. An extension to the scheme was announced at the time of the 2021 Budget. As a result, it will continue to provide support until September 2021. Three grants have already been made … Read more

Have you started a Side Hustle in the past year?

selling online

Are you trading? Lockdown restrictions have forced many businesses to close temporarily and for people to look at potential Side Hustles. Selling goods or clothes online on sites such as eBay and Depop offers the opportunity to raise some much-needed cash in these difficult times. What are the associated tax implications and do you need … Read more