Rogue refunds of Class 2 NI due to HMRC failure
HMRC has incorrectly refunded Class 2 NI to some self-employed taxpayers. What should you do if you get an unexpected payment?
                        
                        Self-employed taxpayers with profits below £6,725 can voluntarily pay Class 2 NI to maintain their entitlement to certain benefits, most importantly, it adds a year to their state pension entitlement record. HMRC appears to have failed to meet the payment deadline for voluntary Class 2 NI for the 2022/23 tax year. As a result, in some cases, its systems have automatically rejected the payment and returned up to £163.80 to the taxpayer. Unfortunately, HMRC is not yet proactively contacting taxpayers to resolve the issue, which means unless affected taxpayers take corrective action, they may lose their entitlement to NI-related benefits for 2022/23.
The Low Incomes Tax Reform Group is recommending that those who have received a refund to call HMRC’s National Insurance helpline on 0300 200 3500 to repay the NI. It's not possible to simply pay the amount to the self-assessment account.
Related Topics
- 
                                    
            
P46 (car) submission deadline
 - 
                                    
            
Deadline to file paper self-assessment returns
 - 
                                    
            
MONTHLY FOCUS: TAX PLANNING FOR MARRIED COUPLES (TRADERS AND COMPANIES)
Married couples have been taxed separately rather than as a unit since 1990. There are a number of strategies married couples (and civil partners) can adopt to save tax. This Monthly Focus looks at business-related income planning.
 





                                This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.