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.

Essex Tax Advisers: File Your Tax Return by 30 December

File Your Tax Return by 30 December to Pay Tax Through PAYE

Essex Tax Advisers at Trueman Brown remind taxpayers that if you owe £3,000 or less in tax for the 2024/25 tax year, you may be able to pay your bill through PAYE—but only if your tax return is filed by 30 December 2025.

This option can help spread your payments over the 2024/25 tax year, easing the financial pressure on your cash flow.

Key Deadlines for 2024/25 Self-Assessment

If you need to file a Self-Assessment tax return for 2024/25, the online filing deadline is 31 January 2026.

Missing this date could result in HMRC penalties and interest.

If HMRC sent your notice to file after 31 October 2025, your deadline is extended — you’ll have three months from the notice date to submit your return.

Remember, any remaining tax due for 2024/25 must also be paid by 31 January 2026, alongside Class 2 and Class 4 National Insurance Contributions if you’re self-employed.

Essex Tax Advisers Explain Payments on Account

For those with a tax and Class 4 NIC liability of £1,000 or more, you’ll also need to make your first payment on account for 2024/25 by 31 January 2025, unless at least 80% of your tax is already deducted at source (e.g., through PAYE).

Local Accountants Paying Self-Assessment PAYE

This means that self-employed individuals or those with mixed income streams may face a double payment hit at the end of January — the balance for 2024/25 and an advance for 2025/26.

Essex Tax Advisers Explain How PAYE Can Help Spread the Cost

The Essex Tax Advisers at Trueman Brown recommend using PAYE to manage your tax payments more effectively. If you receive income taxed under PAYE (for example, a salary or pension), HMRC allows you to spread your Self-Assessment bill over the tax year via adjustments to your 2025/26 tax code.

This means you can pay your tax in 12 interest-free instalments, rather than a single lump sum. Given the continuing cost-of-living pressures and rising interest rates, this is a practical and cost-free way to smooth your finances.

Am I Eligible to Pay Through PAYE?

You can pay your 2024/25 Self-Assessment bill through PAYE if:

You owe less than £3,000 in tax.
You already pay tax through PAYE (from employment or a pension).
You file your tax return online by 30 December 2025, or on paper by 31 October 2025.

However, you cannot use PAYE to collect Self-Assessment tax if:

Your PAYE income is too low to cover the additional deductions.
Adjustments would mean paying more than 50% of your income in tax.
The PAYE adjustment would more than double your PAYE tax deductions.
Your tax bill originally exceeded £3,000 and was only reduced by payments on account.

If you owe more than £3,000, you’ll need to pay the balance by 31 January 2026 or consider a Time to Pay arrangement with HMRC.

How Trueman Brown Essex Tax Advisers Can Help

At Trueman Brown, our Essex Tax Advisers specialise in helping individuals and small businesses optimise their tax position and manage Self-Assessment efficiently.

We’ll help you determine whether you qualify to pay via PAYE, calculate your liabilities accurately, and ensure you meet every HMRC deadline.

We’ll make sure your tax return is filed on time — and that you make the most of every payment option available.

FAQ – Paying Self-Assessment Tax Through PAYE

1. What is the deadline to file if I want to pay via PAYE?
You must submit your Self-Assessment return online by 30 December 2024.

2. Is there a limit on how much tax can be collected through PAYE?
Yes — the maximum is £3,000 for the 2023/24 tax year.

3. Can I still set up a Time to Pay arrangement if I miss the PAYE option?
Yes. HMRC allows you to spread your tax bill using a Time to Pay plan, though interest will apply.

4. Does paying via PAYE affect my take-home pay?
Yes, your monthly PAYE deductions will increase, but it spreads the cost over 12 months interest-free.

5. Can Trueman Brown help with both PAYE and Self-Assessment?
Absolutely. Our Essex Tax Advisers provide expert advice on tax returns, PAYE integration, and cash flow planning for individuals and small businesses.