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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 2 National Insurance contributions: Small Earnings Exception: Special Groups: Partnerships

The net profit is allocated between the individual partners in a partnership. Partners usually enter into a Partnership Agreement under which, amongst other things, they specify how profits are to be calculated and divided. The agreement does not have to be in writing. It can be oral or implied. An agreement can be altered from time to time with the consent of the parties. It may be agreed, for example, that a partner’s share of the profits for a given year shall be limited to a particular sum. Where there is not agreement providing for a different apportionment, the law assumes profits to be divided equally, regardless of the partners’ initial contribution to partnership capital.