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.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

News / Blog

22nd
August

Government pledges regional initiatives to rebalance national economy

One of the principle drivers in the last Government’s economic policies was targeted regional initiatives. These initiatives were intended to…

14th
August

Rise in the national living wage is disproportionately affecting small businesses claims FSB

Is your small business struggling to cope with financial pressures? Is your SME being squeezed by commodity price inflation, rising…

7th
August

SMEs struggling to cope with higher business rates and levels of bad debts

How tough are small businesses findings things at the moment? Well, a new survey by Bibby Financial Services of 1,000…

31st
July

Bacs research shows late payments are costing SMEs over £2 billion a year

If you run a small business, you’ll probably already be painfully aware of the threat that late payments can pose…