Class 4 when Class 1 already paid.

by **Pooza** on Wed Jan 04, 2012 3:51 pm

Hello all

I'm currently completing the SA100 return for my partner.

I have a small issue which someone may be able to advise on. When my partner is paid each week her employer actual actually deducts class 1 NIC (although obviously no PAYE)

However when filling in the tax return the only option is to say whether she is class 4 exempt or not. Well she isn't class 4 exempt but I don't think she should have to pay it having already had class 1 NIC deducted at point of payment.

Any advice gratefully received.

Thanks

by **pjclar02** on Wed Jan 04, 2012 5:14 pm

Hello there

If all of the income is from employment, then there will be no class 4 liability due. You can just ignore the class 4 exemption parts as these relate to self-employment.

Let us know if there is also self-employment income as the situation will be different.

Best wishes

by **Pooza** on Wed Jan 04, 2012 5:36 pm

Thanks for the reply

I don't think I phrased the original question very well.

What I should have said is that the company which my partner works for, in a self employed capacity, is deducting class 1 NIC from what they pay her, so I don't think she should be liable to pay class 4 NIC in addition to this.

There is no 'employment' involvement.

Apologies for the confusion.

by **pjclar02** on Wed Jan 04, 2012 5:48 pm

What industry does your partner work in?

I'm just wondering why class 1 NIC would be deducted if she is not an employee. Do they deduct tax as well?

by **Pooza** on Wed Jan 04, 2012 8:10 pm

No they don't deduct paye tax, just class 1 NIC.

However I think you may have put me on the right track as she's an entertainer. Looks like entertainers pay class 1 rather than class 4 NIC.

http://www.hmrc.gov.uk/nic/ca72b-notes.pdf

Thanksfor the hint!