Class 2 NIC - how are they treated?
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Hi
My husband is self employed and has a business bank account. Through this bank account, he pays Class 2 NIC each month. CR bank, DR NIC account.
These NICs are currently reflected as an expense in his accounts. Should they included his tax return anywhere?
The tax return specifically states to exclude his own employment costs from box 3.51. Are they tax deductible? Should they be an expense his accounts or do they need to included anywhere on his tax return?
Thanks.
My husband is self employed and has a business bank account. Through this bank account, he pays Class 2 NIC each month. CR bank, DR NIC account.
These NICs are currently reflected as an expense in his accounts. Should they included his tax return anywhere?
The tax return specifically states to exclude his own employment costs from box 3.51. Are they tax deductible? Should they be an expense his accounts or do they need to included anywhere on his tax return?
Thanks.
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Comments
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Re:Class 2 NIC - how are they treated?
Hi Smarty,
NIC are not a business expense - I post straight to drawings.
I also do my husband's bookkeeeping & accounts, but always get an accountant to check them over & do tax return - he's never corrected treatment this way.
Jan0 -
Re:Class 2 NIC - how are they treated?
Yup - NICs are a drawing not a business expense - sadly
Claudia
PS - actually would trade in NICs for tax as a business expense
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