Voluntary Class 2 NIC wrongly refunded

Jul 4, 2024

If you made voluntary Class 2 national insurance contributions (NIC) for the 2022- 23 tax year, check whether this payment has been refunded in error by HMRC.

Some self-employed taxpayers who made voluntary Class 2 payments by 31 January 2024 may have an unexpected gap in their national insurance (NI) record due to an HMRC processing error. This is important as it may reduce the individual’s entitlement to certain contributory benefits such as the state pension, maternity allowance and employment support allowance.

The requirement to make voluntary contributions was changed from 6 April 2024. For the tax year 2022-23, self-employed individuals with profits below the small profits threshold of £6,725 could make voluntary payments of Class 2 NIC to secure their entitlement to contributory benefits.

The HMRC process that moves these voluntary payments from the self assessment computers to the taxpayer’s NI record was run late following the 31 January 2024 deadline, resulting in the Class 2 payment being rejected and subsequently refunded by HMRC.

To reinstate the payment and ensure the 2022-23 tax year is counted towards your qualifying contribution years you will need to phone the NI contributions office, obtain a payment reference and make a special payment. We can help you with this.

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