‘Sleeping’ and Inactive Limited Partners – New NICs Liability

HM Revenue and Customs (HMRC) have had a rethink as regards the law governing National Insurance Contributions (NICs) and announced that sleeping partners and inactive limited partners are liable to pay Class 2 NICs as self-employed earners and Class 4 NICs in respect of their taxable profits.



From 6 April 2013, sleeping or inactive limited partners must pay Class 2 NICs unless covered by one of the exemptions.



Any Class 4 NICs liability should be accounted for in the 2013/2014 tax year of assessment and for subsequent tax years.



You can register for Class 2 NICs and self-assessment online.