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
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?
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.