Why am I being charged Class 2 National Insurance in my 2024/25 Self-Assessment?

Some self-employed taxpayers are mistakenly charged Class 2 NICs due to an HMRC IT issue. If your profits exceed £12,570, you should only pay Class 4 National Insurance, not Class 2. Always check your self-assessment 2024/25 calculation to ensure it is correct.

Do I need to pay Class 2 NICs through Self-Assessment for 2024/25?

No. From 6 April 2024, Class 2 NICs are voluntary for self-employed individuals with profits below £6,725. Voluntary contributions can help build qualifying years for your State Pension, but if your profits are above this threshold, Class 2 should not appear on your self-assessment.

What should I do if my Self-Assessment shows the wrong Class 2 NIC charge?

If you’ve filed your 2024/25 self-assessment and notice an incorrect Class 2 NIC charge, contact HMRC to request a correction. If you haven’t filed yet, consider waiting until HMRC resolves the issue (expected by September 2025).

What happens if I already paid the incorrect Class 2 NICs through Self-Assessment?

HMRC will refund or credit any incorrect Class 2 NIC payments to your self-assessment account once the error is fixed. Keep proof of payment and HMRC correspondence for reference.

When is the deadline for submitting my 2024/25 Self-Assessment?

The online filing and payment deadline for 2024/25 self-assessment is 31 January 2026. The HMRC Class 2 NIC error does not affect this deadline. Submit on time to avoid late filing penalties.

Capital Allowances Small Pool Write Off – Updated for 2025/26

Businesses that don’t use the cash basis can claim capital allowances for qualifying purchases such as machinery, equipment, or tools.

The capital allowances small pool write off allows a business to deduct the remaining balance in its main pool if it falls below £1,000 at the year-end — offering a simple way to claim relief in full.

What Are Capital Allowances and the Small Pool Write Off?

Capital allowances provide tax relief on qualifying capital expenditure.

Normally, a writing-down allowance (WDA) of 18% applies to the main pool, and 6% to the special rate pool (for example, integral features or high-emission vehicles).

However, if the balance of the main pool is less than £1,000, businesses can claim the capital allowances small pool write off, writing off the entire balance instead of continuing to claim WDAs annually.

2025/26 Updates to Capital Allowances

For the 2025/26 tax year, the Annual Investment Allowance (AIA) remains at £1 million, continuing to give 100% immediate relief for qualifying assets.

The capital allowances small pool write off threshold remains £1,000, adjusted proportionally for accounting periods shorter or longer than 12 months.

Dagenham local nearby accountants small pool capital allowance

Additionally, full expensing continues for companies investing in new main-pool plant and machinery.

However, the small pool write off remains valuable for unincorporated businesses and where AIA or full expensing are not applicable.

Example – Applying the Small Pool Write Off

Let’s consider a self-employed consultant with a main pool balance of £800 after claiming WDAs in previous years.

Instead of carrying this balance forward, they can use the capital allowances small pool write off to deduct the full £800 in the current accounting period, reducing taxable profits and simplifying record-keeping.

Why Use the Capital Allowances Small Pool Write Off?

Simplifies your capital allowance records.
Accelerates relief by clearing out small residual balances.
Avoids unnecessary small WDAs in future years.
Helps optimise tax relief when the AIA or full expensing isn’t beneficial.

How Trueman Brown Can Help You With The Capital Allowances Small Pool Write Off

At Trueman Brown, we specialise in ensuring businesses maximise all available tax reliefs — including the capital allowances small pool write off.

Our expert tax accountants in Dagenham can help you identify qualifying expenditure, prepare claims, and plan efficiently for future asset purchases.

📧 Email: mark@truemanbrown.co.uk
📞 Call: 01708 397262

We provide practical advice and ongoing support to help your business stay tax-efficient and compliant with the latest HMRC rules.

Frequently Asked Questions About The Capital Allowances Small Pool Write Off

1. What qualifies as a small pool for the write off?
If your main pool balance is under £1,000 (pro-rated for non-12-month periods), you can claim the full amount as a deduction.

2. Does the small pool write off apply to the special rate pool?
No, it only applies to the main pool. Special rate pool assets continue to attract WDAs at 6%.

3. Can companies using full expensing still claim the small pool write off?
Yes, but it’s mainly relevant when full expensing isn’t claimed or available — for example, for older assets.

4. Is the £1,000 limit changing in 2025/26?
No, it remains unchanged for the 2025/26 tax year.

5. Do I need to make an election to claim the small pool write off?
Yes, you must make the claim in your tax computation or return for the relevant accounting period.

Capital Allowances Small Pool Write Off 2025/26 Guide