Last month we reported some self-employed taxpayers who made voluntary class 2 National Insurance Contributions (NICs) for 2022/23 and received an unexpected refund from HMRC, which may have been an error. HMRC has now provided an update regarding this issue.
What is the issue?
- Voluntary contributions are usually made to enable taxpayers to secure their entitlement to the State pension, Maternity allowance and employment and support allowance.
- Due to a processing error, some taxpayers have received a self-assessment tax calculation (SA302) indicating that the payment of NIC class 2 contributions for 2022/23 was made late, despite being paid before the 31 January 2024 deadline.
- Affected taxpayers will have:
- Received a refund of class 2 NIC.
- Received a credit on their Self Assessment account.
- Received a credit which has been allocated against a different liability.
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Affected taxpayers may now find a gap in their NIC records which could impact their entitlement to allowances.
What should you do?
- HMRC have advised they can't automatically amend taxpayers' records, despite the payment being made on time.
- Taxpayers are advised to check thier online account or use the HMRC App to check thier records.
- Unfortunately, the New digital NI tool is not available to self-employed individuals.
- If there is a gap in taxpayers' NIC records, the only way to resolve the issue is for taxpayers to contact the NI contributions office.
- Agents should check the SA302 self-assessment calculations to identify if they have clients with this issue.
Useful guides on this topic
Unexpected Class 2 NIC refunds?
Some self-employed taxpayers who made voluntary class 2 National Insurance Contributions (NICs) for 2022/23 have received an unexpected refund from HMRC: this may have been an error.
HMRC launches digital National Insurance payment service
On 29 April 2024, HMRC introduced a new digital service, enabling taxpayers to conveniently check their State Pension forecast and make voluntary contributions to address gaps in their National Insurance (NI) record.
State benefits: Tax-free and taxable
What state benefits are taxable? What state benefits are tax-free?
Pension: Check National Insurance records by 5 April 2025
The government has extended the voluntary National Insurance contribution deadline again, from 31 July 2023 to 5 April 2025. This gives taxpayers more time to fill gaps in their records to maximise their future State Pension benefits.
Personal Tax Account
What is a Personal Tax Account? How do I get one? What can I do with it?
National Insurance: Rates
What are the current National Insurance rates? What rates will apply to next year?
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