Eddystone
Blogger
Share this content
0
390

Class 4 - is my software correct ?

Offsetting losses

I have a client who is in two partnerships. Last year his share of profits from one was £44k, but from the other there was a £7k loss.

I was expecting the Class 4 NI to be calculated on the net result of £37k but no, it calculated it on the £44k. Is this correct ?  

I have of course requested that the loss be offset for Income Tax and this worked as expected but, as far as I can see, there's no box to tick to offset the loss for NI purposes.

Thanks

Replies

Please login or register to join the discussion.

avatar
16th Aug 2017 23:53

Actually, I've just found there is a box - 27 on the partnership pages. So I've bunged in the loss and it's brought back the Class 4 to what I originally anticipated.

Can anyone confirm that it's ok to effect this offset ? The notes only mention offsetting earlier years' losses, so maybe it isn't ok.

Thanks

Thanks (0)
avatar
By MJShone
17th Aug 2017 08:49

It is - the Class 4 NIC is payable on the net profit ie profit of one business less loss of another.

Thanks (0)
avatar
to MJShone
17th Aug 2017 09:59

Thanks, MJ - as I'd expected.

Thanks (0)
Share this content