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.

Self Assessment Penalties | Trueman Brown Accountants

Understanding Self Assessment Penalties – What You Need to Know

If you file late, you could face serious self assessment penalties.

For the tax year ended 5 April 2025 (the 2025/26 filing season), the deadlines remain: online returns must be submitted by 11:59 pm on 31 January 2026, and paper returns by 11:59 pm on 31 October 2025.

Failing to meet these deadlines can trigger automatic self assessment penalties, regardless of whether you owe any tax or not.

What are the key deadlines and how do they relate to self assessment penalties?

Paper returns for the 2024/25 tax year must be received by HMRC by midnight on 31 October 2025.
Online returns must be submitted by 11:59pm on 31 January 2026.
If you are required to complete a return (for example you had untaxed income) and you haven’t registered by 5 October 2025, HMRC may treat you as late and issue self assessment penalties.
You must also pay any tax you owe by 11:59pm on 31 January 2026 to avoid additional late-payment penalties.

"Infographic explaining 2025/26 self assessment penalties in the UK with royal blue background, showing tax deadlines, late filing and payment penalties, and Trueman Brown contact details."

How the self assessment penalties for late filing build up

Missing the filing deadline triggers a series of automatic self assessment penalties, even if you owe no tax.

The current regime (for those not yet under the new MTD income-tax regime) remains:

£100 penalty as soon as the deadline is missed.
After 3 months from the deadline: £10 per day penalty for up to 90 days (maximum £900).
After 6 months: a further penalty of either £300 or 5% of the tax due, whichever is greater.
After 12 months: another penalty of either £300 or 5% of the tax due (whichever is higher) unless special rules apply.

These self assessment penalties can mount quickly and may reach £1,600 or more where there is both tax owed and maximum stacking of penalties.

Late payment penalties and interest (in addition to filing ones)

Even if you file your return on time, you can still incur self assessment penalties if you pay the tax due late.

Here are the key points:

At 30 days after the tax due date, HMRC charges a penalty: 5% of the tax unpaid at that point.
At 6 months after the due date, a further 5% of tax unpaid.
At 12 months, yet another 5% of the tax unpaid.
Interest is charged from the original payment due date until payment is made.

It is worth noting that new penalty rules for those signing up to Making Tax Digital for Income Tax (MTD ITSA) are being introduced (points-based for late submissions and shorter timeframes for payment penalties) which could affect self assessment penalties in future years.

What counts as a “reasonable excuse” when facing self assessment penalties?

If you miss a deadline, you can appeal the self assessment penalties on the basis of a ‘reasonable excuse’. The excuse must cover the period of lateness and you must act as soon as you’re able. Examples might include serious illness or a system outage beyond your control.

However, HMRC generally does not accept ignorance of the law or forgetting as a reasonable excuse, so relying on this is risky.

How can you try to reduce or avoid self assessment penalties?

File and pay on time: meeting the deadlines avoids the fixed £100 and subsequent daily or percentage charges.
If you’re late, file as soon as possible: even if you’ve missed the first deadline and incurred the £100, filing sooner stops the daily £10 charges.
If you can’t pay the tax owing, speak to HMRC about a Time to Pay arrangement — if accepted, this may mitigate further late payment self assessment penalties.
Review whether you actually needed to file: if HMRC sent you a notice in error you may ask for the return to be withdrawn (but appeal case-by-case).
Keep good records: if you face inaccuracy or failure to notify penalties additional to the basic late-filing ones, accurate records help.

How Trueman Brown can help you

If you’re concerned about self assessment penalties, whether because you’re nearing the deadline, have missed it, or need help navigating your tax affairs, we at Trueman Brown are here to assist. We can:

Help you determine whether you need to file, and by which deadline.
Prepare and file your return promptly to minimise the risk of penalties.
Coordinate with HMRC if you’ve already missed a deadline and arrange steps to reduce further self assessment penalties.
Assist with Time to Pay arrangements to mitigate late-payment penalties.

FAQ – Frequently Asked Questions on self assessment penalties

Q1. If I don’t owe any tax, can I still be charged self assessment penalties?
Yes. Even if you owe no tax, you can be liable for the automatic £100 late-filing penalty simply for missing the return deadline.

Q2. If I file late but pay my tax on time, do I avoid all penalties?
No. Filing late triggers the filing-related self assessment penalties regardless of payment. Paying your tax on time only prevents late payment penalties, not the late-filing charges.

Q3. Can I appeal a self assessment penalty?
Yes. You can appeal a penalty if you have a reasonable excuse. The appeal form (SA370) usually must be submitted within 30 days of the penalty notice.

Q4. What about the new Making Tax Digital rules — will they change how self assessment penalties work?
Yes — for those brought into the MTD ITSA regime, new rules apply (points-based late submission penalties and earlier payment-late triggers). These new rules are being phased in.

Q5. What should I do if I’ve missed the deadline and haven’t filed yet?
File immediately. The sooner you file, the sooner you stop accruing daily self assessment penalties. Then contact us (mark@truemanbrown.co.uk / 01708 397262) to review your situation and manage any further exposure.

Self Assessment Penalties 2025/26 | Trueman Brown Accountants