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Personal Tax - How to edit NIC Class 2 and 4?

Article ID
personal-tax-how-to-edit-nic-class-2-and-4
Article Name
Personal Tax - How to edit NIC Class 2 and 4?
Created Date
4th October 2021
Product
Problem
IRIS Personal Tax-How to edit NIC class 2 and 4 on SA100
Resolution

How to edit Class NIC4

  1. If they have Employment income – Income, Employment, Earnings/Foreign earnings, Open the employment and enter in ‘Class 1 earnings from P60’ at the bottom
  2. TPV, NIC adjustment, make changes to the top for Class 4.  Do not use ‘negative’ values as they are ignored on the Tax comp.
  3. This NIC4 adjustment option is to reduce the profits only, as per HMRC guidance.

How to edit Class NIC2

  1. TPV, NIC adjustment, make changes to the bottom for Class 2 and tick Overide and Voluntary payments.  Do not use ‘negative’ values as they are ignored on the Tax comp.
  2. Note: If the Class 2 is missing on the Tax comp then untick ‘Voluntary payments made’ and check the Tax comp again.

Why is the Trade comp showing the NIC adjustment but not the Tax comp?

The Trade computation simply takes the value that is entered in the adjustment field and applies it in the report, it does not verify it onto the Tax comp.
Also the Tax Computation is an independent calculation that is based on the HMRC calculation.

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