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PTP TR - Entering Class 1 NIC and Class 2 NIC and the impact on Class 4 NIC

Article ID
kba-03553
Article Name
PTP TR - Entering Class 1 NIC and Class 2 NIC and the impact on Class 4 NIC
Created Date
28th December 2016
Product
Problem
HMRC calculates Class 4 amount depending on the Class 1 and Class 2 amounts
Resolution

To make entries relating to Class 1 amounts please do the following within PTP Tax Platform:
– Click on the Calculation button
– Click on the backing schedule of ‘Enter Class 1 and Class 2 amount(s) here for Class 4 calculation
– Make an entry of the Employer‘s name
– Make an entry of ‘P60 column (earnings from PT to UEL)
– Click on the Close button
– Click on the Print Tax Calculation button

To make an entry for Class 2 amount please do the following within PTP Tax Platform:
– Click on the Calculation button
– Click on the backing schedule of ‘Enter Class 1 and Class 2 amount(s) here for Class 4 calculation
– PTP will automatically show Class 2 amount at the top of the screen
– If you want to overwrite the amount, then first tick the box ‘If you want to overwrite the Class 2 NIC value please tick the box.’
– Make an entry under the box: ‘Class 2 amount
– Click on the Close button
– Click on the Print Tax Calculation button

Depending upon the level of a contributor’s profits and the amount of Class 1 and Class 2 NICs paid, the maximum amount of Class 4 NICs due will vary. For more information please view the Tax calculation summary notes at the link below and check pages from TCSN 34 to TCSN 35:  
https://www.gov.uk/government/publications/self-assessment-tax-calculation-summary-sa110

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