Self Assessment - Self-employment section

[swill453]

OK, that's this year's return done and dusted.

One bit that threw me a bit was the self-employment question. It asks if you have turnover of more than £1000 and if you don't, it doesn't even offer the pages to fill in. This is new for the 17/18 tax year.

I am registered as self-employed with turnover less than £1000, and I want to pay voluntary class 2 NI contributions to boost my state pension.

It turns out that to be able to do this, you have to answer yes to the "turnover more than £1000" question, even if it isn't. Not very intuitive, but I called the helpline who told me this.

Scott.

[DrBunsenHoneydew]

This is a new £1000 allowance for small casual earnings like doing a bit of gardening or babysitting to simplify the HMRC administration cost for non-substantive jobs. In reality it has to apply to all forms of self employment.
Details at https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

[mearnsfool]

Good find Scott,

I will be doing the same thing with the good ladies tax return April 2019. Registered her as self employed early this month to do the Class2 thing to get her final pension NI credit for 2018/2019 as she is £0.75 short of the flat rate pension maximum at the end of 2017/2018 tax year.

[MyNameIsUrl]

I will be doing the same thing with the good ladies tax return April 2019. Registered her as self employed early this month to do the Class2 thing to get her final pension NI credit for 2018/2019 as she is £0.75 short of the flat rate pension maximum at the end of 2017/2018 tax year.

Hope you don't mind if I ask a follow-up question about the bit in bold, as my wife is in need of extra years contributions. Have you registered your good lady as self-employed purely for the ability to make class 2 contributions? We'd considered this but had thought that the need to submit accounts for the self-employment on her tax form (using an accountant?) would outweigh the savings made on the NI. Will you have to show some taxable income?

[swill453]

It's simple income/expenditure boxes on the self assessment form you have to fill in. And as this thread alludes, if it's less than £1000 they don't even ask for that any more.

I did some basic eBay trading, turnover far less than £1000, and got another year added to my pension for the grand total of 140-odd quid. Bargain of the century.

But this is the last year you can do it, Class 2s are being abolished.

Scott.

[mearnsfool]

Yes just register as self employed, do it now but must be done by October 2018.

Only need a duplicate book to do a few invoices to her customers.

A excel sheet with a few expenditure items but must be true.

April 2019, add the Self employed page to her self assessment tax return.

Fill in turnover and expenses.

Tick box to pay Class 2 NI.

Lodge tax return.

Pay the £150.00 or there abouts Class 2 NI bill to HMRC.

Hasle HMRC or DWP to transfer the money from the HMRC receiveing account to the DWP NI account.

Sorted with £4.50 a month or so extra pension when she starts her state pension.

[DrBunsenHoneydew]

Yes just register as self employed, do it now but must be done by October 2018.

Only need a duplicate book to do a few invoices to her customers.

A excel sheet with a few expenditure items but must be true.

April 2019, add the Self employed page to her self assessment tax return.

Fill in turnover and expenses.

Tick box to pay Class 2 NI.

Lodge tax return.

Pay the £150.00 or there abouts Class 2 NI bill to HMRC.

Hasle HMRC or DWP to transfer the money from the HMRC receiveing account to the DWP NI account.

Sorted with £4.50 a month or so extra pension when she starts her state pension.

£4.50 a week?

[swill453]

Hasle HMRC or DWP to transfer the money from the HMRC receiveing account to the DWP NI account.

I didn't do any hassling and it seemed to happen about December.

Scott.

[swill453]

£4.50 a week?

Yes. And that £150 has bought you something that would cost about £10,000 on the open market (ie to buy an equivalent index-linked annuity.

Scott.

[mearnsfool]

Hasle HMRC or DWP to transfer the money from the HMRC receiveing account to the DWP NI account.

I didn't do any hassling and it seemed to happen about December.

Scott.

That appears to happen for some people but plenty have to chase the process.

Most of my friends got an invitation to claim their state pension by letter with the code to claim the pension online. I had to download the paper form and fill it in and then post it.

The main thing appears to be that not everyone has the same experiance.

[mearnsfool]

£4.50 a week?

Just checking you were paying attension, you passed that one!!!!!!!!!!!!!

[chas49]

Just to complete the circle for anyone searching the board, see this topic (viewtopic.php?f=17&p=165113#p165113) for details of the postponement of the abolition of Class 2 NIC.