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papillonvintage
Level 1

My net profit is under my tax allowance, but why do I still seem to have a tax estimate?

 
1 REPLY 1
AlexV
QuickBooks Team

My net profit is under my tax allowance, but why do I still seem to have a tax estimate?

Welcome to QuickBooks Community, papillonvintage.

 

The most possible reason for this is that you've reached the threshold to pay the National Insurance. There are two pay types of National Insurance:

  • Class 2 if your profits are £6,365 or more a year
  • Class 4 if your profits are £8,632 or more a year

Let's go to your Taxes tab to verify. Also, you'll want to read this guide about Self-employed National Insurance rates. Additionally, you can check this page to learn more: Rates and allowances: National Insurance contributions.

 

Keep your posts coming if you need more help. Have a great day!

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