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Where Taxpayers and Advisers Meet

Class 4 NI

Joined:Wed Aug 06, 2008 3:43 pm
Class 4 NI

Postby Yiannis17 » Mon Nov 16, 2020 2:16 pm


I have a client who has 3 self employments of which only one was profitable. The other two made losses. In his tax computation the loss has been offset against the profitable business for income tax purpose but for class 4 NI this is being calculated on the profitable business only. The client is adamant he pays less NI and there should have been an offset. I have spoken to the software provider who tells me the software is correct and an adjustment cannot be made.

Am i missing something here?

Joined:Tue Jan 31, 2017 10:41 am
Location:NE Scotland

Re: Class 4 NI

Postby greybags1 » Mon Nov 16, 2020 3:55 pm

I think an entry in box 102 on the full s/e page for the profitable trade is required.

Joined:Wed Aug 06, 2008 4:01 pm

Re: Class 4 NI

Postby robbob » Mon Nov 16, 2020 5:04 pm

I would agree with greybags1 - box 102
Full chapter and verse (which is very painful) here

Your software provider has told you porkies - they are probably jumping to conclusions here i suspect - when there is multiple buisnesses all with profits no box 102 entry is needed so i am guesisng they are confusing the issue you have with that situation - i suspect if you push them on their porkiness they will own up that they were telling you porkies :). To be fair to your software supplier the official notes to box 102 completely fail to mention the current year loss ofsett scenario which really is pretty unhelpful as i guess thats a much more common situation than the examples they do go to the trouble of mentioning.

Joined:Wed Aug 06, 2008 3:43 pm

Re: Class 4 NI

Postby Yiannis17 » Mon Nov 16, 2020 5:46 pm

Thank you both

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