National Insurance error identified on some 2024/25 Self Assessment returns
What’s the issue?
Following recent legislative changes, some self-employed individuals no longer need to pay Class 2 NICs. However, despite these reforms, HMRC’s systems are, in some cases, still displaying Class 2 NICs as owed.
A reminder of the 2024 changes
From 6 April 2024, self-employed individuals with profits at or above the Small Profits Threshold (£6,725 for 2024/25) are no longer required to pay Class 2 NICs. Instead, their contributions are treated as paid automatically, ensuring continued access to contributory benefits such as:
- State pension
- Maternity allowance
- Employment and support allowance
Only individuals with profits below the Small Profits Threshold need to consider making voluntary Class 2 contributions to protect their entitlement to these benefits.
What action is HMRC taking?
HMRC has confirmed that some tax returns have been affected by this technical error, resulting in incorrect SA302 summaries that show Class 2 NICs as due when they are not. This issue is currently under investigation, and HMRC is working to correct the error.
What should you do?
If you believe your return has been affected or are unsure whether the Class 2 NICs shown are correct:
- Review your SA302 calculation carefully
- Check your profit level against the Small Profits Threshold
We’re here to help
If you’ve received an incorrect NIC charge or would like reassurance that your return has been submitted correctly, our team is here to support you. We can review your tax return, liaise with HMRC on your behalf, and ensure any necessary amendments are made promptly.
For assistance, please contact a member of our Tax team via the form below.