NIM21012 | Class 2 National Insurance Contributions: Small Earnings Exception: How Net Profit is calculated: Admissible expenses: Private/domestic expenses

Only business expenses could be deducted in arriving at net earnings. Expenses were only partly allowable in the case of -

• rent, rates, lighting and heating, and so on 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 was made for the Council Tax on domestic property.