Class 2 NI problems to continue beyond summer
The problems with incorrectly charged Class 2 NI have been widely reported. HMRC has just released an update, and it’s bad news for affected individuals. What’s the full story?
We reported previously that incorrect SA302s that include Class 2 NI were being issued, despite compulsory payments being abolished from April 2024. Note that this only affects taxpayers that have already filed their 2024/25 tax return. HMRC has now issued an update to explain that incorrect letters will continue to be sent until an IT issue is resolved in September. With Making Tax Digital right around the corner, how will HMRC cope if it can’t even stop sending out letters it knows are incorrect for over two months?
In the update HMRC stresses that there won’t be any long-term impact as it will refund, or credit the account of, all affected customers. If you’ve received a letter concerning the “correction” of your 2024/25 tax return regarding Class 2 NI, you will be notified by HMRC when it has updated your account. There is no need to pay the erroneous amount in the meantime.
Related Topics
-
Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
-
HMRC text or scam? Check before you act
HMRC is contacting some taxpayers by text this week about overdue Self Assessment liabilities and is also sending updates about VAT registration applications. At the same time, it has expanded its guidance on spotting fake HMRC messages on social media. How can you tell whether a message is genuine?
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.