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HMRC internal manual

National Insurance Manual

Class 4 NICs: computation of liability: particular trades: sub-postmasters: periods up to 2002 to 2003

This guidance applies to periods up to and including 2002 to 2003.

For later periods, Regulation 94A SS(C)R2001 applies - see NIM24625.

A typical sub-post office consists of a retail trade together with a post office counter.

A sub-postmaster is an officeholder. Their income from the post office is employment income, on which they pay Class 1 NICs.

The profits from the retail trade are taxable under Case I of Schedule D. These profits are liable to Class 4 NICs (SSCBA92/S15).

Where the sub-postmaster introduces the salary into the computation of the profits of the retail business, it is also liable to Class 4 NICs as part of the taxable profits (assuming that the payment is not capital in nature).