Working full-time and being self-employed Thread poster: Maja Źróbecka, MITI
|
|---|
Dear all,
I am writing in the hope that someone will know the answer to my questions so thank you in advance for your replies.
I am a native speaker of Polish and live in London. I work full-time and also do translations. The time has come when I finally have to register as self-employed as my workload steadily increases.
I was just wondering whether anybody could tell me how my insurance contributions will be calculated from the moment I go self-employed? Will m... See more Dear all,
I am writing in the hope that someone will know the answer to my questions so thank you in advance for your replies.
I am a native speaker of Polish and live in London. I work full-time and also do translations. The time has come when I finally have to register as self-employed as my workload steadily increases.
I was just wondering whether anybody could tell me how my insurance contributions will be calculated from the moment I go self-employed? Will my employer be exempted from paying my NI contributions or will they still continue to deduct this amount from my salary, regardless of the fact that I will be paying my own Class 2 and Class 4 insurance?
I have been trying to find out whether there are any benefits of being self-employed and working full-time, however, without much success. What about drawbacks??
Thanks!
Maja
Polish Translator ▲ Collapse
| | | | Laura Pastondi
United Kingdom
Local time: 13:50
Member (2006)
English to Italian
+ ...
SITE LOCALIZER | Call the Inland Revenue | Feb 20, 2007 |
Hi Maja,
Have a look at the website of the Inland Revenue or call them, they are very kind and willing to answer your questions!
Have a nice day!
| | | | Marion Lurf 
United Kingdom
Local time: 13:50
English to German
+ ...
| You probably have to pay both | Feb 20, 2007 |
Hi Maja,
As far as I know, your employer has to continue paying Class 1 NICs even though you're self-employed; however, if your earnings are below a certain threshold (£4,635 per year in tax year 2007/08), you are exempt from paying Class 2 NICs - you need to apply for a so-called SEE (Small Earnings Exception). You can find plenty of info on the HMRC website, for instance, have a lo... See more Hi Maja,
As far as I know, your employer has to continue paying Class 1 NICs even though you're self-employed; however, if your earnings are below a certain threshold (£4,635 per year in tax year 2007/08), you are exempt from paying Class 2 NICs - you need to apply for a so-called SEE (Small Earnings Exception). You can find plenty of info on the HMRC website, for instance, have a look at http://www.hmrc.gov.uk/startingup/working-for-yourself.pdf, which contains a useful chapter about NICs. This guide also says that if you pay too much in NICs, you can either defer your Class 2 and 4 payment until the end of the year or automatically get a refund. I assume that overall nothing will change with regard to your Class 1 contributions.
Regardless of your full-time job and in case you do have to pay them, your Class 2 NICs will be calculated from the day you register as self-employed. Currently they are £2.10 a week, but they will be raised to £2.20 in the coming tax year. You can choose how to pay them, by monthly direct debit, quarterly in arrears etc. Watch out, there may be a fine if you don't register with Revenue & Customs within a certain period after becoming self-employed. Class 4 NICs are payable when you do your tax return.
I am not that knowledgeable about other benefits as it will depend specifically on your case. The link posted above contains some information about tax credits etc., but it might really be useful to give HMRC a ring.
HTH,
Marion ▲ Collapse
| | | |
for your comments! Much appreciated
Maja
| | | | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » Working full-time and being self-employed | TM-Town | Manage your TMs and Terms ... and boost your translation business
Are you ready for something fresh in the industry? TM-Town is a unique new site for you -- the freelance translator -- to store, manage and share translation memories (TMs) and glossaries...and potentially meet new clients on the basis of your prior work.
More info » |
| | Wordfast Pro | Translation Memory Software for Any Platform
Exclusive discount for ProZ.com users!
Save over 13% when purchasing Wordfast Pro through ProZ.com. Wordfast is the world's #1 provider of platform-independent Translation Memory software. Consistently ranked the most user-friendly and highest value
Buy now! » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |
Login to reply/comment 
Translation news
