Profits for Class 4 NIC purposes are generally calculated in the same way as for income tax. However, payments received from a coronavirus self-isolation support scheme with effect from 6 April 2021 are not taken into account for Class 4 purposes (though are still taxable under ITTOIA 2005, Pt. 2, Ch. 2) having been retrospectively exempted under s.10, National Insurance Bill 2021. A ‘self-isolation support scheme’ includes:

Test and Trace Support Payment in England;

Self-Isolation Support Grant in Scotland;

Self-Isolation Support Payment in Wales; and

Any other corresponding or similar scheme as may be designated by HM Treasury.

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