Husband & wife partnership. Husband died part way through the 2019/20 tax year. Wife continued the business as a sole-trader. The business is seasonal and makes very little profit (hill sheep farming with majority of livestock sales taking place in the two months of Sept & Oct ).
Wife's share of profit for the whole business year to 31 March 2020 is £4,986 (below the class 2 threshold) but is reported on her tax return in two parts:
£6,752 partnership profit for basis period 1.4.19 to 29.10.19 (date of husband's death)
£ (1,766) sole-trader loss for basis period 30.10.19 to 31.3.20 (winter months are loss making with high feeding bills & few livestock sales)
As the partnership element of the wife's profit exceeds the £6,365 threshold at which class 2 NIC becomes compulsory does she have to pay class 2 NIC given that her total annual profit from this one continuous business was below the threshold ?
The tax return software I use (Ftax) requires the class 2 NIC liability to be calculated manually and will accept a zero value, but is it correct to record this as zero or is it payable for the weeks during which she was in partnership ?