NIM24510 - Class 4 NICs: who is liable: the main exceptions

A number of categories of people are exempt from paying Class 4 NICs, these include:

• People under the age of 16 at the beginning of the year of assessment. Such people are exempt from Class 4 NICs liability if they apply for and receive a certificate of exception (Regulation 93 SS(C)R 2001).
• People over state pension age at the beginning of the year of assessment (Regulation 91(a) SS(C)R 2001). A person who attains state pension age during the course of the year of assessment remains liable for Class 4 NICs for the whole of that year.
• Trustees, guardians etc of an incapacitated person who are liable to tax under section 72 TMA 1970 or section 8 ITTOIA 2005, are exempt from paying Class 4 NICs on that income under paragraph 5 of Schedule 2 SSCBA 1992.
• People who are treated for income tax purposes as not resident in the UK (Regulation 91(b) SS(C)R 2001). Residence for Class 4 NICs purposes follows the rules for income tax (see the Residence Manual for guidance on this point).
• People who are divers or diving supervisors for the purposes of section 15 ITTOIA 2005 (Regulation 92 SS(C)R 2001). Such people are exempt from paying Class 4 NICs on any profits which derive from that employment. See also NIM24630.

See NIM24001 and NIM24080 for guidance regarding liability for Class 4 NICs.