As reported earlier this year (Tax Journal, 3 May 2024), some voluntary payments of Class 2 NICs were credited to individual NICs records late, resulting in those individuals being treated as though their contributions had been paid late and therefore not accepted. In some cases, HMRC had rejected and refunded the payments.
The professional bodies had urged HMRC to find a solution to the problem which would not require individuals to call HMRC helplines. The ICAEW reports that HMRC have not been able to put such an option in place, meaning that taxpayers will need to check their online account or the HMRC App to find out whether their Class 2 contributions for 2022/23 are showing on their NICs record. Where contributions have not been credited correctly, they will need to call the NICs helpline. The ICAEW notes that agents will need to check the self-assessment calculation and alert clients as necessary.
Caroline Miskin, Senior Technical Manager – Digital Taxation at the ICAEW said: ‘It is very disappointing that HMRC is not able to fix this problem that is of its own making. This will generate additional demand on HMRC helplines that are already not able to cope. Perhaps an even greater concern is that taxpayers (especially those that are unrepresented) will not follow this through and will lose out. They may only discover the problem on retirement when they find that there is a shortfall in their state retirement pension. It highlights the importance of everyone checking that their national insurance record is correct.’
As reported earlier this year (Tax Journal, 3 May 2024), some voluntary payments of Class 2 NICs were credited to individual NICs records late, resulting in those individuals being treated as though their contributions had been paid late and therefore not accepted. In some cases, HMRC had rejected and refunded the payments.
The professional bodies had urged HMRC to find a solution to the problem which would not require individuals to call HMRC helplines. The ICAEW reports that HMRC have not been able to put such an option in place, meaning that taxpayers will need to check their online account or the HMRC App to find out whether their Class 2 contributions for 2022/23 are showing on their NICs record. Where contributions have not been credited correctly, they will need to call the NICs helpline. The ICAEW notes that agents will need to check the self-assessment calculation and alert clients as necessary.
Caroline Miskin, Senior Technical Manager – Digital Taxation at the ICAEW said: ‘It is very disappointing that HMRC is not able to fix this problem that is of its own making. This will generate additional demand on HMRC helplines that are already not able to cope. Perhaps an even greater concern is that taxpayers (especially those that are unrepresented) will not follow this through and will lose out. They may only discover the problem on retirement when they find that there is a shortfall in their state retirement pension. It highlights the importance of everyone checking that their national insurance record is correct.’
