sub postmaster and class 4 nic

[kismetkaz]

I am hoping desparately that somebody can advise me. I have just taken on a post office. they run a small shop, so the sub postmaster salary income is not taxed at source, but treated as trading profits. I understand that the amount of salary that the Class 1 NIC is paid on, is not subject to Class 4 NIC. HMRC own guidelines NIM24625 clearly state that only the sub postmaster is excempt from Class 4, therefore the partner in the business, would have to pay class 4 NIC on all earnings. However my client is disputing this and states that they have not paid them before. HMRC ESM4400 states that all earnings which an earner derives from employed earners employment but which are included in the calculation of trade profits are exempt from Class 4. So does this mean that any surplus from the wife can be used for the husband??

which applies, is he exempt or not? has his old accountant been doing it wrong by neither of them paying any, or am I doing it wrong by wanting him to pay??

thanks in advance for any help anybody can give.

[pawncob]

There's only one subpostmaster. There's only one salary. What they did before was wrong.