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
- 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
NIM24080 for guidance regarding
liability for Class 4 NICs.