Compulsory Class 2 NI has been abolished but that hasn’t stopped HMRC sending out demands for it for the last tax year. What’s happening?
2024/25 is the first tax year in which Class 2 isn’t compulsory but can be paid voluntarily by those with earnings below £6,725. It seems like HMRC’s systems are stuck in the past because incorrect SA302s that include Class 2 NI are being sent out to some taxpayers. This only affects taxpayers that have already filed their 2024/25 tax return. The erroneous calculations show either a Class 2 NI charge of £179.40 has been added to the computation, which should not have been included and:
- now needs to be removed; or
- the tax liability has been increased by double this amount and needs to be revised and the NI charge removed.
Whilst the computations are clearly incorrect, the covering letter states that the tax calculation has been corrected by HMRC. HMRC is looking into this issue but anyone who receives a revised tax computation should check whether it is correct, and if not, inform HMRC.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.