Individuals that have filed their 24/25 self assessment tax returns early are being urged to check HMRC’s tax calculations as, thanks to a technical hitch at their end, in some instances tax payers are being asked to pay Class 2 NI, even though it was scrapped in April 2024.
‘The problem seems to have arisen because taxpayers receive a ‘credit’ for class 2 NI as long as their self employed profits are above £6725. This means they do not need to pay Class 2 NI’ explained Lisa Powell (Personal Tax Manager at 360, Chartered Accountants). ‘Anyone below this profit can pay voluntary contributions to ensure they’re entitled to the full state pension when they come to retire’ she continued. ‘For some reason HMRC’s systems are requesting payments from those that do not need to so it’s vital to check this hasn’t happened to you’.
360 will automatically check HMRC’s tax calculations for clients whose tax returns we prepare and file and we will be in touch with any affected clients.
