Class 4 NIC automatically generated on Tax Return?

Class 4 NIC automatically generated on Tax Return?

9:25 AM, 16th January 2020, About 4 years ago 3

Text Size

Is Class 4 NIC due on a UK property tax return?

I know this question was asked only last year by Benj, and in spite of having read all the replies (and links), I cannot understand why I cannot seem to remove the class 4 contribution calculation from my tax assessment this year. It was not generated on my 2017/18 return. I am not employed. I am not involved in any other business trade or profession. I only receive rental income from my former residence and 1 other from inheritance.

I have been through my return reviewing all my answers, and I can’t figure out what I have completed differently to generate a different result. The profit figure is lower than last year (empty period). I think I am only generating the property section and using the cash basis. I have rental income from 2 properties, but that was the same last year. I have phoned HMRC for their advice but the person I spoke with was not able to help.

One baffling item though is a page within my online “tailored” return which refers to registering for relief for construction industry sub contractors?

Followed by a page with tick boxes for exemption from Class 4:- for under 16, over state pension age, non UK resident, Trustee or diving instructor, none of which apply.

I also see this on another page which I don’t remember having selected previously: “ I wish to make an adjustment to my profits chargeable to Class 4 NICs” (Optional)

I am hoping someone may have a clue as to what I may have done wrong?


Share This Article


Neil Patterson

9:29 AM, 16th January 2020, About 4 years ago

Got us stumped on this one as our accountants at Pacific have completed all our returns for us for about 20 years. We are going to need someone that completes their own or an accountant 🙂

John Bullock

22:38 PM, 16th January 2020, About 4 years ago

NI is not payable on investment income. You mention Ir35 sub contracting which indicates to me you have likely entered your income or some income on a business as if trading

Michael Barnes

12:45 PM, 20th January 2020, About 4 years ago

Phone HMRC and ask them. They may be able to fix it during the phone call.

As John says, it sounds like you have at some point indicated to HMRC that you are trading.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now