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
-
SPECIAL FOCUS – 2024 AUTUMN BUDGET
The first Labour budget speech since 2010 took place on 30 October 2024, with a headline figure of £40 billion in tax rises. In this special Monthly Focus we summarise all of the key announcements.
-
HMRC launches MTD ITSA toolkit
HMRC has launched a new online tool to help taxpayers determine whether they need to use Making Tax Digital for Income Tax. What is it and how can you use it?
-
Proof of employment expenses now required
HMRC now insists on evidence of employee expenses claimed through PAYE. What records do you need to keep?