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
-
Temporary workers - your pension obligations
If you’re employing temporary workers for the summer season don’t forget that they have the same rights to join your workplace pension as permanent employees. What do you need to do?
-
Late payment interest to be cut
A cut to the Bank of England base rate means there will be another reduction in HMRC's penalty interest rates. What are the new charges and when will they take effect?
-
Making a main residence nomination
Where you have more than one home, you can choose which is the main residence for capital gains tax purposes. What factors should you consider when making the choice and when can a nomination be made?
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.