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Posted Wed, 18 Jan 2023 17:12:27 GMT by Henry Li
Hello, this is my first post. I found the forum recently and think it's a great idea and service. I have a question about miscellaneous income and whether it impacts Class 2 and Class 4 National insurance. If I'm not earning via self employment, but receive income (e.g. £20,000) from miscellaneous sources (crypto), is Class 2 and Class 4 National Insurance payable? In addition, would the £20,000 figure count towards the annual contribution allowance of a Self-Invested Personal Pension (SIPP) ? Thank you.
Posted Mon, 23 Jan 2023 13:32:22 GMT by HMRC Admin 32

You only pay Class 2 and Class 4 on self employed income. The incomme you refer to could be deemed as this if you consider it to be trade. If not, you may be liable to Capital Gains Tax on it due to the buying and selling of the crypto. The £20,000 would only count if you actually put it into the SIPP.

For details on crypto see: 

Cryptoassets Manual

Thank you.

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