News: December 2013
Class 4 NICs have to be paid up to state retirement age even where that is increased
It needs to be appreciated that Class 4 NICs are only not due by the self-employed with profits in excess of the lower annual profits limit if under 16 or he/she reached state pension age (SPA) before the start of the tax year in question.
The start of the tax year is 7 April for this purpose, so anyone born on 6 April is exempt for the tax year which factually started on that day.
As and when the SPA rises, liability to Class 4 NICs continue. As an example, a woman born on or before 5 April 1951 is not liable to Class 4 NICs as from 2012/13, whereas when her SPA was 60 they ceased to be due from 2011/12.
HMRC’s BRC activity in the Edinburgh, Glasgow, Leeds, Bradford and Stockport areas will explore new ways of using the checks. As part of this, HMRC will evaluate new risk processes and ensure new approaches are cost-effective and fit with its wider compliance activity.