The ATT has identified a potential problem with the processing of voluntary payments of class 2 NICs for the tax year 2022/23 for individuals with profits below the small profits threshold (£6,725) who opted to make contributions to preserve entitlement to contributory state benefits.
According to the ATT, for voluntary class 2 contributions due by 31 January 2024, HMRC appears to have credited the payments to some individuals’ NICs records late, meaning that affected individuals have been treated as if their contributions were paid late and have not been accepted. In these circumstances, HMRC then rejects the class 2 payment and issues a refund.
Individuals in this situation who still want to pay class 2 are advised to call the NICs office to obtain a payment reference and then make a direct payment. It is not possible to simply pay the amount back onto the self-assessment account, according to the ATT.
The ATT suggests that advisers check that any clients who have tried to pay class 2 voluntarily have not had payments incorrectly returned.
The ATT has identified a potential problem with the processing of voluntary payments of class 2 NICs for the tax year 2022/23 for individuals with profits below the small profits threshold (£6,725) who opted to make contributions to preserve entitlement to contributory state benefits.
According to the ATT, for voluntary class 2 contributions due by 31 January 2024, HMRC appears to have credited the payments to some individuals’ NICs records late, meaning that affected individuals have been treated as if their contributions were paid late and have not been accepted. In these circumstances, HMRC then rejects the class 2 payment and issues a refund.
Individuals in this situation who still want to pay class 2 are advised to call the NICs office to obtain a payment reference and then make a direct payment. It is not possible to simply pay the amount back onto the self-assessment account, according to the ATT.
The ATT suggests that advisers check that any clients who have tried to pay class 2 voluntarily have not had payments incorrectly returned.
