Just have a hypothetical question based on a conversation I was having with someone.
I know they have changed the billing of these to a six monthly affair - payable October and April. However if you registered as self employed in August, would the bill in October just be from date of registration to October, therefore approx 3 months, or would they backdate the billing to April despite you not being self employed for the first three months.
That's what it was when I register. I'll explain myself now. I've been speaking to a lady who said she registered as self employed in August. In April they changed the billing to every six months, so bills come out April and October. She received her first bill in October for the full £65. I thought she should only have paid from the date of registration, therefore her bill should have only been around £30, but I can't find anything on the HMRC website. My first instinct is she has been overcharged, but I then thought that maybe when they changed the billing they may have changed the terms, in that you pay the whole 6months during which you register.
As I said though, I can't find anything to suggest that on HMRC, so wondered if anyone on here knew more than me, before I go back to the lady and tell her whether her billing was correct or not.
She doesn't have to pay as she will def earn less than the threshold but then again, I don't have to pay either but I feel it would be beneficial to do so if a need to claim arose.
All I need to know is, should she be paying from April, or just from August. Or, as its voluntary, it really shouldn't matter and she should just pay what she wants/can afford as she is below the threshold anyway?
-- Edited by Sammy76 on Friday 6th of January 2012 10:46:29 AM
I wouldn't put it past them to deliberately overcharge. As Jenny says, I'd be surprised if they could now demand with menaces prior to self employment.
I was paying monthly and then had a letter from HMRC stating that they were changing the dates of NI to coincide with the dates of SA. Therefore I had a break in payments between April and July and then they started collecting them again.
Ah right, just read the link .....there is an option to pay monthly or six-monthly....just got a bit confused by the mention of six-montly payments above as I wasn't given the option.
I too am still paying monthly and had the payment break like you. I'm just wondering what will happen next year as from next July I could officially retire (I'm on the phased from 60 lot!!!) and I know if employed I would no longer have to pay NI. I also have read that for self-assessment currently I would not have to pay the 8% for the entire 2012-13 tax year. However, I have heard it muted that there is talk that the concession of people not having to pay NI after retirement age may be rescinded to bring in more tax in this economic climate. Just my luck when I thought I'd be 8% better off!!!!
