»Ê¹ÚÌåÓýapp

National Insurance Contributions Act 2002

Income Tax (Trading and Other Income) Act 2005 (ITTOIA)

Major changes were made to the structure of Class 4 NICs from 6 April 2003.

»Ê¹ÚÌåÓýappse changes were put into effect by the National Insurance Contributions Act 2002, together with various supporting regulations.

Guidance on these changes can be found at NIM24033 onwards.

»Ê¹ÚÌåÓýapp changes affect the amount of Class 4 NICs payable by self-employed earners or earners whose profits or gains are chargeable to income tax under Chapter 2 of Part 2 of ITTOIA, (formerly Case I or II of Schedule D of the Income and Corporation Taxes Act 1988). »Ê¹ÚÌåÓýapp change do not disturb any of the existing Class 4 NICs rules covering:

• the date upon which Class 4 NICs are due
• the method used to assess Class 4 NICs liability - a percentage based system
• the starting point at which liability for Class 4 NICs arises or
• the year of assessment, which remains the income tax year for which tax under ITTOIA is payable.

Guidance on:

• those areas of Class 4 NICs liability which are not affected by the changes and
• the structure of Class 4 NICs before 6 April 2003

can be found at NIM24001 onwards.