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Sleeping partners must pay NICs, says HMRC

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HMRC has changed its view of the liability of sleeping partners and inactive limited partners for national insurance contributions.

The department announced on 4 April that it now considers that such partners are, and have been, liable to pay class 2 NICs as self-employed earners and class 4 NICs on taxable profits. But it will not require payment from those who have not paid NICs in the past.

Class 2 NICs are payable from 6 April 2013. Class 4 NICs are assessed annually, but HMRC will not seek payment for 2012/13.

HMRC and the DWP will provide in the summer details of arrangements for those who may wish to pay contributions for years prior to 2013/14 in order to qualify for, or improve, contributory benefits. Further guidance is provided on the HMRC website.