Hi,

Sorry for the basic question but I'm struggling to find an answer. As a sole trader, do I pay class 4 NIC's on my personal tax allowance or do i deduct my expenses AND personal allowance from my gross profit and then pay class 4 on what remains?

Thanks

class 4 on (defined) profits after deducting expenses. and then on any difference between the personal allowance and the class 4 amount.

Thanks for the reply!

Just to be sure...

Gross income £30,000

Expenses £5,000

Personal allowance £10,600

Class 4 (@ 9% over £8,000) - £6,400?

Thanks

this eg may help explain

https://www.taxcalc.com/kb/index.php?View=entry&EntryID=806

Ok, many thanks for your time

no worries, hope it helped.

from what you posted then;

9% on 17 (25 minus 8) = around 1,500

then those 'additional conts' on 2.5k?

is that correct?

if you're doing their online system, it shld work it out for you.

Yeah that sounds right. Yep going to start the return online soon, thanks again

Good luck with that, I was self-employed for years and always found it a nightmare trying to keep up to date with things, I was never too good at the book keeping lark.

How's your business doing.

Hi, it's going ok, thanks. I'm a courier so not too much admin it's just the self assessment part I'm finding complicated as I don't have a head for numbers.

the online system shld work things out for you as it goes along (so long as the correct figures are inputted in the right place ), and show how much is due in the end.

it is a mare though.

have a good look at what can be deemed 'expenses'.

I'm a courier so not too much admin

Hi, stacks of work for couriers just now and looks like it will continue to increase, I work for Royal Mail and we share a depot with Parcelforce.

A couple of my mates went self employed and got their work from Parcelforce but found it hard graft, having to do a lot more hours and drops than they really wanted to.