This is annoying me much more than it really should... mainly because I can't seem to find confirmation of it anywhere online. I'm employed very close to earning over the upper limit of Class 1 NI where you'd start paying the lower 3.25% on income above this threshold. I'm also self employed (sole trader) and this year I'm going to be liable for Class 2 and Class 4 contributions. Class 4 talks about "profits" rather than income so feels like a separate thing. but when putting the figures into https://www.employedandselfemployed.co.uk/tax-calculator it didn't look right and a quick bit of maths suggested I'd actually be paying the lower rate Class 4 of 3.25% on part of that income... Therefore... am I correct in saying because my employment income + self employed income exceeds the upper limit... I'd pay the lower rate class 4 as self employed income increases... Or is this calculator just wrong and I'd pay 13.25% on Class 1 and would pay 10.25% Class 4 until I'm separately earning over £50,270 self employed?
To be fair I'd suggest the same. Whenever I or the OH have called they have been really helpful and really are the only ones who can give you a definite answer geared towards your specific case
