Sleeping Partners And NI.

In the past sleeping partners and inactive partners didn’t have to pay NI contributions on their partnership profits.

However, HMRC changed its view on this in April 2013 and it now considers that all partners are liable to pay NICs in respect of their taxable profits, whatever their level of activity within the business.

The implications for inactive and sleeping partners are:

  • If not already registered as self-employed, the person must register with HMRC and arrange to pay class 2 NICs from 6 April 2013;
  • exemption from paying class 2 NICs can be claimed if the taxable profits are low, or the individual has another employment; and
  • class 4 NICs will be due on their profits from 2013/14 onwards and will collected through the normal self-assessment for 2013/14.

News / Blog

17th
May

The Latest Increase of the National Minimum Wage and National Living Wage

Last month saw the jump of over 2 million people receiving a pay rise after the national minimum wage increased…

11th
May

Starting up a Small Family Business

Choosing to start a Small Family Business is feasible alternative to starting a small business on your own, and it…

10th
May

12 Financial Mistakes Made by Most Entrepreneurs

Believe it or not, even the most successful entrepreneurs often make mistakes with their accounting that could potentially leave them…

26th
April

Writing a Successful Business Plan

Business plans are not just useful for finding funding for finance for a start-up business. A business plan can help…