The Chartered Institute of Taxation (CIOT) has highlighted issues with HMRC's 2024-25 Self Assessment calculations. Several individuals have reported that Class 2 National Insurance Contributions (NICs) are being incorrectly included on SA302 tax calculations.
From 6 April 2024, compulsory Class 2 NICs were abolished. Self-employed individuals now receive a credit for Class 2 NICs, provided their profits exceed £6,725.
Individuals with profits below £6,725 can choose to make voluntary Class 2 contributions to secure access to contributory benefits.
The CIOT has highlighted that, following a 2024-25 Self Assessment return submission, a number of taxpayers who are not required to pay Class 2 NICs, and are not making voluntary payments, have had SA302 calculations issued by HMRC which include a figure for Class 2 contributions.
The incorrect SA302 calculations will either have:
- A Class 2 NICs liability totalling £179.40, which should not have been included.
- A Class 2 NICs liability totalling £179.40, which should not have been included, with the tax liability being increased by double this amount.
At present, the CIOT is not aware of any errors other than the two set out above. They ask to be made aware of any other errors that differ from these examples.
The matter is currently being investigated by HMRC.
Useful guides on this topic
National Insurance: Rates
What are the current National Insurance rates? What rates will apply to next year?
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your own Unique Tax Reference code (UTR).
Self Assessment Return 2024-25: What's new?
2025 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2025.
External link
CIOT: Class 2 NIC: Self-Assessment Computation Issues for 2024/25