Partnership Class 4 NIC

dagreensta · Postby **dagreensta** » Tue Apr 12, 2005 8:23 am

I have followed the Inland Revenue's Tax Calculation Guide but this seems to indicate that there is no class 4 NIC to pay on profit from income from property in a partnership. The calculation guide only asks for the figure from box 4.22 of the full form and does not mention the figure in 4.55.

I also get the same result if I enter the figures in Sage Personal Tax.

Is this correct?

King_Maker · Postby **King_Maker** » Tue Apr 12, 2005 8:46 am

Yes.

Property rental is not normally a trade/profession, and is not classed as earnings for Class 4 NIC (nor for Class 2).

dagreensta · Postby **dagreensta** » Tue Apr 12, 2005 10:12 am

Ah i see - so just to confirm, property rental income that the partnership has received is not subject to class 4 NIC?

King_Maker · Postby **King_Maker** » Tue Apr 12, 2005 10:27 am

If all the partnership does in respect of the properties is to receive rents and provides no other services, then Class 4 NIC is not applicable.

dagreensta · Postby **dagreensta** » Tue Apr 12, 2005 10:53 am

Thanks a lot that's helped a great deal. I couldn't find any info on this on the Revenue web site or in the Tax Return Guide - don't suppose you know where I can find the relevant Helpsheet etc on it?

King_Maker · Postby **King_Maker** » Tue Apr 12, 2005 11:11 pm

A property investor is not a self-employed earner for NIC.

Have you read the Inland Revenue's booklet IR24 "Class 4 National Insurance contributions"?

dagreensta · Postby **dagreensta** » Wed Apr 13, 2005 12:09 am

Great stuff thanks a lot.

This site is excellent.