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Class 2 Computation Issues for 2024/25

The ATT has reported issues affecting the computation of Class 2 National Insurance contributions for 2024/25 tax returns.

From the 2024/25 tax year, self-employed individuals with profits above £6,725 receive a credit for Class 2 NICs and are not required to pay it. Those with profits below this threshold may still opt to pay Class 2 voluntarily.

Members of ATT have reported receiving three types of letters from HMRC after submitting tax returns for clients not liable for Class 2 contributions and not paying voluntarily. In each case, the correspondence indicated that Class 2 NICs had been amended “in accordance with the information we hold.”

The three letters are as follows:

1. •

   in one version, the Class 2 NIC amount is amended to zero, which aligns with the tax return, rendering the letter redundant

2. •

   in another version, a Class 2 charge of £179.40 has been wrongly added and needs removal

3. •

   in the third version, the same erroneous charge of £179.40 has been added, and the overall