Reports are coming in about errors in HMRC’s tax calculations for 2024/25 involving Class 2 NI contributions. What steps should you take if you’ve been affected?
Class 2 NI. Until April 2024 Class 2 NI was payable by self-employed individuals and business partners through their self-assessment tax returns. It was abolished in April 2024 and is now only payable voluntarily if your annual profits are less than at least £6,725 and you want to add to your rights to state pension and other benefits. However, HMRC seems to have other ideas.
Incorrect calculations. If you’ve already filed your 2024/25 self-assessment tax return without voluntary Class 2 contributions, you might have received tax calculations from HMRC erroneously showing you owe Class 2 NI of £179.40 or even double that amount, i.e. £358.80. To rub salt into the wound HMRC includes the message with its dodgy calculations saying “Your Class 2 National Insurance figure has been corrected in line with the information we hold.”
Tip. The figures mentioned above may differ if you either started or ceased being self-employed in 2024/25. Basically, any Class 2 NI liability which is showing on your SA302 tax calculation is wrong unless you actively ticked the box to voluntarily pay it.
Action required? HMRC says it’s urgently investigating the errors. In the meantime, if you’ve already submitted your 2024/25 tax return and received a tax calculation back which doesn’t tally with your original figures, check whether the culprit is the Class 2 NI error.
Tip. While it might be easy to overlook this discrepancy, you should query it with HMRC right away so that you’re not eventually pressed for payment of an amount which isn’t due (see Further information ). Ask for an amended self-assessment calculation. It might also be worth checking your NI record (see Further information ) after the correction to make sure 2024/25 is a qualifying year for state pension purposes.
HMRC’s systems have a glitch which is fabricating Class 2 NI and tax liabilities of up to £358.80 for 2024/25. When you receive your tax calculation, check it carefully and contact HMRC to get it corrected if necessary.
Further information
Check your NI position
Self Assessment: general enquiries
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