PM275300 | National Insurance Contributions (NICs)

Following a change of view taking effect from 6 April 2013, HMRC consider that sleeping and inactive partners in a partnership are gainfully employed as self-employed earners and so are liable to Class 2 and Class 4 National Insurance Contributions.

Individual (non-corporate) partners are liable to Class 2 and Class 4 NICs on their own share of the trade or profession carried on by the partnership.

Class 2 and 4 contributions are also payable on the taxable profits of sleeping partners and inactive limited partners.

For general guidance on Class 2 and Class 4 National Insurance Contributions, see the National Insurance Manual.