Class 2 self-employed National Insurance contributions are now collected through self assessment, and next year will be abolished.
Unfortunately they are not going quietly! There have been several issues with collection. These include:
- Recalculation and refunds by HMRC of Class 2 payments which are actually due for payment
- Taxpayers showing as no longer registered for Class 2 when they should be
- Information entered on self assessment returns not feeding through to National Insurance records
- Taxpayers working as self employed overseas using an A1 certificate to excuse them having to pay contributions elsewhere may have to pay their Class 2 in two parts: some direct to the NI section of HMRC (invoiced by post) and the rest via self assessment
Rather a mess. I have been dealing with any issues for clients as they come up. Any clients receiving a letter regarding Class 2, or particularly in invoice, should please let me know. Only one more year’s Class 2 to deal with.