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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: Small Earnings Exception: How Net Profit is calculated: Admissible expenses: Private/domestic expenses

Strictly, only business expenses can be deducted in arriving at net earnings. Expenses are only partly allowable in the case of -

  • rent, rates, lighting and heating, etc of premises used partly for business and partly for domestic purposes;
  • bank charges where the account is not solely related to the business;
  • telephone charges where there is both business and private use of the telephone and running expenses and;
  • hire purchase rental charges for a vehicle used both privately and for business purposes.

No deduction is made for the Council Tax on domestic property.