Loss and NIC4

[v.jenner]

Hi,

I am full time employed and pay all my taxes through that but also have a sideline selling cosmetics for direct selling company.

I have only made a small amount and the expensives where actually greater than the profit and therefore I have made a slight loss. When filling in the online return, I was requested to pay NIC 4. Am i still required to pay NIC 4, although I have not made a profit? Thanks

[pawncob]

Class 2 is due from all S/E people if their income is over the thresh hold. (Exemption can be claimed under this)

Class 4 is due on PROFITS above £7225. No profit, no Class 4.

[King_Maker]

Class 2 is due from all S/E people if their income is over the thresh hold. (Exemption can be claimed under this)

Class 4 is due on PROFITS above £7225. No profit, no Class 4.

You seem to be making a distinction between income and profit for Class 2 and Class 4 NI?

Class 2 NI is also due on NET PROFIT - not income. The Small Earnings Exception is currently £5315. It needs to be applied for - and, in theory, can only be backdated 13 weeks.