Sub-postmasters pay Class 1 contributions in respect of their earnings from that office, This was confirmed by the First-tier Tribunal in Bimson v HMRC (No 2)1 referred to in more detail below.
Most sub-postmasters will also pay Class 4 (and, up to 2023/24, see E8.301, Class 22) contributions on their other earnings (such as the profits of a grocery shop), and should take care to keep their Post Office earnings separate from their profits and losses as self-employed earners, as otherwise the NIC&EO will seek to treat the former as part of the latter. Since the Post Office appointment is, however, both individual and non-delegable, it is in any event appropriate separately to record the earnings arising from that appointment when the companion business is run as a partnership.
Previous HMRC practice to include sub-postmaster income as trading income
Up to April 2019, HMRC permitted inclusion of the employment earnings as part of the trading profits of the companion business by issuing a 'no tax' coding, whereby the former are paid gross. The concession
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