Self-Assessment Class 2 National Insurance contributions – HMRC error

HMRC working to resolve an issue affecting some Self-Assessment taxpayers in relation to Class 2 National Insurance contributions (NICs) for the last tax year.

They stated that the nature of the error depends on individual circumstances, but some tax payer with self-employed profits above £12,570 have seen a Class 2 NICs charge of £358.80 added to their accounts when they shouldn’t have been. In some circumstances it will be less.

HMRC taken action to correct the Class 2 NICs figure where the information they hold has allowed them for correction.

HMRC will correct the records of other tax payer after the issue has been resolved and notify them when they have done so. Tax payer will be issued with a new SA302 tax calculation after their record has been corrected with a new 30-day limit.

Some tax payers have reported receiving a letter ‘correcting’ their NICs figure to the initial (correct) figure submitted in the tax return. In these circumstances the customer will not receive a further SA302 as the information held on record is correct.

Unfortunately, incorrect Class 2 NICs letters will continue to be issued until the IT problem is resolved in September. HMRC will be correcting records before any incorrect amounts due affect the tax owed for 2024 to 2025. 

HMRC understand this may be concerning there should be no long-term impact. Tax payer who may have made a payment will either be refunded or have a credit added to their Self-Assessment statement.

For further details contact Amin & Co Accountants (Accountant Manchester) or call at 0161 224 3510