HMRC can't fix Class 2 NI problem
Some people have been receiving mysterious refunds of Class 2 NI in recent weeks. HMRC has now provided an update on the issue. What’s going on?
Class 2 NI has been collected via self-assessment for a while now, but there are still problems. It was recently reported that HMRC’s systems were reversing payments where the (separate) NI system doesn’t have a self-employment record set up. It’s often overlooked that a self-employed person still needs to register separately for income tax and NI purposes. Now, the Institute of Chartered Accountants has identified a further problem with the payments for 2022/23.
The issue arises where the payment was made on or just before 31 January 2024. The problem is that HMRC payment processing that should have taken place on 2 February was delayed by three days. Some people may have received an SA302 saying that they have paid late. If you are affected, you will have either had a refund of the Class 2 NI, or the amount will be unallocated on the self assessment system.
Unfortunately, despite pressure from various professional bodies to come up with an online fix, HMRC has now said that there is no solution other than to make a phone call to the NI helpline on 0300 200 3500. However, you can at least check your personal tax account to see if your Class 2 NI credit is showing for 2022/23. If it is, you don’t need to take any further action.
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