Class 2 Self Assessment

Gem7321Gem7321 Experienced MentorDevonMAAT, AAT Licensed Accountant Posts: 1,438
I just stumbled across this forum, I don't know if this is the sort of thing you want or not!

I have prepared a clients self assessment using HMRC own online service and the class 2 NIC liability was showing as nil despite making a self employment profit of just over £10k. I telephoned the NIC helpline on 23 June who said they had not generated a self employed national insurance record for him, so they would do it and it would recalculate within 72 hours.

On Wednesday 29 June the liability was still showing as nil. I telephoned the NIC helpline again who said they would refer it and someone would call me back the same or next day. On Friday 1 July still no news so I telephoned again and they said the previous notes on the issue were useless and I should submit the return anyway. I advised I was unwilling to send the return to my client for signing when the TC pages are incorrect so they said I would just have to wait for it to be updated but could not tell me how long it would take.

The help section on the website regarding this issue reads as follows:

If you are an Agent filing on behalf of your client

If the Class 2 amount shows 'Not Available, check help' this may be because:

your client has not registered to pay Class 2 NICs. Go to Register for HMRC taxes
you’re trying to complete your clients return between 2am – 5am when this facility is unavailable
If the Class 2 amount show ‘£0.00’ this may because of one of the following reasons:

your client has not registered to pay Class 2 NICs go to Register for HMRC taxes
your client may have paid the maximum NICs due
your client may have received certain benefits meaning no Class 2 NICs are due
your client may be paying Class 2 in a different way, e.g. they were abroad
To check if any of these apply contact the National Insurance helpline.

MarieNoelleAAT_Team

Comments

  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Update: on the phone to HMRC again, they told me to hit the 'recalculate' button - which does not exist. Apparently this button is not available to agents.

    As yet still no solution. They are still advising that I submit the return with incorrect TC pages and they will 'amend it manually' which I am not prepared to do.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Have now spoken to national insurance, self assessment and online services who are all blaming each other and saying 'nothing I can do'.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Submitted a complaint, update received today; there is nothing more they can do and they have closed the case!

    They have said they are seeing lots of incorrect calculations coming through - I am waiting to hear whether they are going to be penalising, as it's their own software failure I don't see how they can but want to hear it from the horses mouth,

    They are still saying to submit the return anyway and class 2 will be calculated when they issue the statement, which I am not prepared to do.

    Have now invested in commercial software to get around the issue :/
  • AAT_TeamAAT_Team Administrator Posts: 515
    Thanks for letting us know @Gem7321 this is exactly the type of info we are after. Thanks
    Gem7321
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