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.

Local accountants : The National Living Wage

Local accountants and tax advisers, Trueman Brown, warn employers about the implementation of the National Living Wage.

It is surprising that after their General Election victory, the Conservative Government decided to implement the policies of their defeated opponents.

One such policy is the living wage!

From 1^st April 2016, employees aged 25 or over and not in the first year of an apprenticeship will receive the living wage of £7.20 per hour.

Employees aged 25 or under will continue to receive the National Minimum Wage (NMW) which is currently:

Age	Rate
21 and over	£6.70 per hour
18 to 20	£5.30 per hour
Under 18	£3.87 per hour
Apprentice aged 16 to 18 or aged 19 if in the first year of apprenticeship	£3.30 per hour

Employers should ensure that their staff should be paid correctly from the 1^st April 2016. HMRC will enforce this legislation just as strongly that they have enforced the NWM!

Local accountants and tax advisers, Trueman Brown, deliver important services for small business. Contact us if you require assistance.

Employers advised on The National Living Wage