Part time self employment?

[bigissue]

If I were to be self employed on a part time basis working 20 hours a week and earning between £5,000 and £7,000 pounds a year how much would I be paying in NI contributions. I do want to pay them to ensure I get a State Pension. I assume that if I am earning under the tax threshold I will not pay tax?

 

Also if I am living with my partner, in full time employment earning £30,000 a year before tax etc will that affect my tax allowance or what I have to pay?

 

Thank you very much in advance!

[honeybee13]

Hi. I don't think tax and NI thresholds are the same. This is from the gov.uk website. You can pay voluntary NI if you want to.

1. Overview

 

You pay National Insurance contributions to qualify for certain benefits including the State Pension.

You pay National Insurance if you’re:

 

 

• 16 or over
  
• an employee earning above £155 a week
  
• self-employed and making a profit of £5,965 or more a year
  
• 
  

You need a National Insurance number before you can start paying National Insurance contributions.

If you earn between £112 and £155 a week, your contributions are treated as having been paid to protect your National Insurance record.

 

https://www.gov.uk/national-insurance/overview

 

This is a link for voluntary NI contributions.

 

https://www.gov.uk/voluntary-national-insurance-contributions

 

In your second paragraph, if you're asking if your partner's income affects your tax, no it doesn't. In the UK everyone is taxed separately.

 

HB

[ericsbrother]

You will pay no tax and for NI it depends how the annual earnings are spread. If equally spread over the months or weeks then you will pay nothing.

Your earnings before tax becomes [payable is £10600 this year and that for a self-employed person is net income so make sure you do your accounts and deductanything allowable from gorss earnings (turnover)

Class 2 NI contributions are £2.80 a week and you can pay these voluntarity if your earnings are below the threshold. If your earnings are above a certain level you pay class 4 contributions.These are automatically calculated if you do your tax return online.

When you decide to become self-employed you should notify HMRC via their specialist call centre. They will then send you some paperwork that will include a personal code or UTR that you need for your tax returns as well as your NI number. For small earnings the tax return is actually quite simple and the form has only about 4 pages that are relevant.

[hacksaw]

Take a look at Marriage Allowance - it might save your partner £212 per year:

 

 

https://www.gov.uk/marriage-allowance-guide/how-it-works