National Insurance (NI). The Government has announced they are doing a U turn and will NOT scrap self employed Class 2 NI as planned. This is a fixed weekly amount of £2.95 which was collected by direct debit and was due to be scrapped as a tax break for the self employed. It will now continue to be collected via your tax return in addition to self employed Class 4 NI, which is 9% on profits above £8,424. Please note PAYE Class 1 NI is at 12% of earnings of above £8,424.
The latest news from PMC Partnership incorporating Pomfreys Accountants – 1st October
If are a non tax payer earning below £12,570 you can earn up to £5,000 tax free of interest. If you are a basic rate tax payer earning over £12,570 up to £50,000 you can earn up to £1,000 of interest tax free.