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NI contributions for 1999/00..help please!!

edkavedkav Feels At HomeRegistered Posts: 37
I am analising a clients previous tax returns and have stumbled across a query that I thought someone out there is bound to know!

In the year 1999/00 net profit is 14.187
less personal allowance 4,335

income on which tax due 9,852.00

1,500 @ 10% 150.00
8,352 @ 23% 1,920.96
tax due 2.071

AND this is the bit i am confused with.....
minus married couples allowance
985 @ 10% 98.50


PLUS NI contributions

6657 @ 6% 399.42

Question is......... What is the 6657 based on??!!

Any advice greatly appreciated - as always.

:cool2:

Comments

  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    What happened in the year before?

    It could be that losses had been utilised against other income but not yet against Class 4 NI.
  • karenvkarenv Well-Known Registered Posts: 114
    I may just be being dumb here but could this be the calculation.

    Class 4 self employed rate for the year was 6% on profits 7530-26000 p.a.

    14187-7530 =6657
  • karenvkarenv Well-Known Registered Posts: 114
    I also cant understand the tax workings.

    To me they should read
    Profit 14187

    Allowances 4335 +985 =5320

    Taxable pay 14187-5320=8867
    1500x10%=150
    7367x23%=1694.41

    Total tax due 1844.41

    Karen
  • DeanDean Experienced Mentor DevonRegistered Posts: 646
    Karen, the MCA is a 'Tax reducer', it works as a Tax Credit not as an income reducer such as the P/A.

    Regards

    Dean
  • karenvkarenv Well-Known Registered Posts: 114
    Oh, got that wrong then.
    As an ex PAYE Tax officer ( many years ago) I asumed the MCa was added to the allowances as it was in my time with the revenue
  • edkavedkav Feels At Home Registered Posts: 37
    The figures i have given are the ones that HMRC have assessed for him!

    Dean, I do not have the year before information so you could be right there. However, I am still not sure about the £6657, as the Ni should be based on the taxable income and even taking into account the 985, it still doesn't add up.
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