HMRC has flagged an issue affecting some Self Assessment taxpayers for the 2024/25 tax year in relation to Class 2 National Insurance contributions (NICs).
Some self-employed taxpayers with profits above £12,570 have incorrectly had a Class 2 NICs charge of £358.80 added to their accounts — in some cases, the incorrect amount may be lower.
What HMRC is doing about it
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HMRC says it has already corrected the figures where its records allow and has notified affected taxpayers directly.
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For others, corrections will be made once the issue is fully resolved, with taxpayers receiving confirmation and a new SA302 tax calculation.
Why it’s happened
This problem appears to stem from the NICs reforms introduced in 2024/25. From this tax year:
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Self-employed taxpayers and partnership members no longer have to physically pay Class 2 NICs.
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If profits are over the small profits threshold (£6,725 for 2024/25), Class 2 NIC is treated as “paid” automatically for benefit entitlement purposes.
What you should do
If you think you’ve been charged Class 2 NICs incorrectly, keep an eye out for communication from HMRC. If you’ve already filed your 2024/25 return and spotted this issue, you may wish to flag it to your accountant so it can be monitored.
At A&C Chartered Accountants, we’re tracking these HMRC updates and will ensure any affected clients have their tax records corrected promptly.
If you’re unsure whether this applies to you, get in touch and we can check your Self Assessment account for you.