Class 2 NIC: Self-Assessment Computation Issues for 2024/25

We have received a number of reports from members about problems with Class 2 NICs being included in SA302 tax calculations for 2024/25.

Following changes announced at the Autumn Budget 2024, from 2024/25 onwards, self-employed people receive a credit for Class 2 as long as their profits are above £6,725. This means they do not need to pay Class 2. Anyone with profits below this level can opt to pay Class 2 voluntarily. 

Members have reported to us that, following the submission of a tax return for individuals who do not need to pay Class 2 (and who are not paying voluntarily) they have received Self-Assessment Tax Calculations (SA302) from HMRC that include a liability for Class 2. The calculations show that either:

• A Class 2 charge of £179.40 has been added to the computation, which should not have been included and now needs to be removed; or
• A Class 2 charge of £179.40 has been added to the computation, which should not have been included, and the tax liability has been increased by double this amount.

We have reported the examples received to HMRC and the matter is currently being investigated ‘as a matter of urgency’. We will update members on what they need to do as we learn more. At the present time, we do not need any more examples, unless they differ from those above.