NIM24640 - Class 4 NICs: computation of liability: particular trades: sub-postmasters: periods up to 2002-03

This guidance applies to periods up to and including 2002-03.

For later periods Regulation 94A SS(C)R2001 applies, see NIM24625.

A typical sub-post office consists of a retail trade together with a post office counter.

A sub-postmaster is an officeholder. Their income from the post office is employment income, on which they are liable to pay Class 1 NICs.

The profits from the retail trade are taxable under Chapter 2 of Part 2 ITTOIA 2005 as trading income. These profits are liable for Class 4 NICs (See NIM24001).

Where the sub-postmaster introduces the salary into the computation of the profits of the retail business it is also liable for Class 4 NICs as part of the taxable profits (assuming that the payment is not capital in nature).