Class 2 NIC errors

HMRC messing up Class 2 NIC

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I am at my wit's end with HMRC. I have had numerous 2015/16 Tax Return calculations "corrected" to remove Class 2 NIC and when I query this with HMRC they say they taxpayer isn't registered as self-employed.

This is blatantly incorrect as they have been completing Returns even for many years before I acted for them and in some cases I have even seen the Class 2 demands in previous years.

Has anybody had any success in getting HMRC to correct the calculations?

 

Replies (10)

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By jon_griffey
23rd Sep 2016 17:44

I have had some success in some cases. Other cases they have had to set up a new UTR, another case I wrote in to object to their correction and instruct them restore the assessment to as it was filed, and they wrote back to say that they couldn't do anything about it. It's all a mess.

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By lionofludesch
23rd Sep 2016 17:55

I just told them that the client resiled from the amendment.

It's his/her self-assessment and HMRC have no right to alter it without permission.

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By Paul Hawes
23rd Sep 2016 19:44

This is one of the most infuriating things at the moment. HMRC say it's either the client is not registered for self assessment or it's an error on their end that they cannot fix. That's it, that's all you can get from them.

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By cstwragby
23rd Sep 2016 21:09

How on earth do they expect MTD to work when they can't get Self Asssessment and NI "departments" to tie up correctly?!

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Replying to cstwragby:
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By lionofludesch
24th Sep 2016 09:27

cstwragby wrote:

How on earth do they expect MTD to work when they can't get Self Asssessment and NI "departments" to tie up correctly?!

They don't. It's just David Dauke.

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Jennifer Adams
By Jennifer Adams
26th Sep 2016 09:16

I too have had this for two clients and rang the phone number on the demand.
Apparently one client rang them ages ago and told them that he was no longer self employed (he went PAYE six years ago and went back to being self employed a couple of years later and apparently 'forgot' to tell NIC dept - different dept from HMRC) and with the other and he also had not rung the NIC lot when he started self employment over 8 years ago.
After me putting them right they said that the client would be getting a demand for the 2015/16 liability with the 31 Jan 2017 payment and a separate demand for the past years. They said that they could only go back 6 years
I then rang clients to tell them this and asked them to check their bank statements for any previous payments. Both came back and said they couldnt see any payments going through.
HMRC said they could only go back 6 years. I worked out how much they should have paid, rang HMRC back to confirm and they will be issuing back demands.
I know we wont be getting a state pension when we get to the age of 70 years (Ha ha!) but payment of Class 2 NIC is not a choice. Thats the voluntary Class 3.

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By lesley.barnes
26th Sep 2016 10:56

I've had several clients who should have paid NI through their tax returns but HMRC system won't let them and the NI department can't sort it either. Personally I can't pay my own class 2 NI through my tax return. I've passed around between, SA, NI and the online service desk. The conclusion was someone in HMRC had set up another NI number for me at some unknown time for an unknown reason. The two sets of records had been merged leaving a botch up behind and now my records can't be changed. I'll put my issues in writing and hope someone can resolve it so I'll be able to continue paying class 2 NI and get a full pension when I retire.

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Sparkly Orange
By Sparkly
29th Sep 2016 11:15

I'll join you in being at wit's end with this too. It's such a small amount that it's not worth our time sorting it out. Last time I called them I had HMRC insisting that my client couldn't have registered as being self-employed so it was not showing on their records and that's why they had "corrected" the 2016 Tax Return. I asked them if they were therefore ignoring the Self-Employment supplementary pages and asked if the Class 4 was also going to be "corrected" to nil. Their answer was a smug "no because that's based on the level of income". Erm no it's based on the level of taxable profits from Self-employment/Partnership income - this was news to the person at the end of the phone on the Agent dedicated line! They should start by introducing electronic "nudges" to themselves to make sure they don't make stupid mistakes like this before even contemplating MTD. The system will surely implode if they carry on down this mad path!

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By tearforfears
11th Oct 2016 14:49

So am i! its driving me crazy! I've spoken to HMRC numerous time and their response is 'they don't need to pay it because your client is not registered', despite earning 200K in sole trader profits!

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RLI
By lionofludesch
11th Oct 2016 15:23

I had one amendment to remove the Class 2 (the client had self employed earnings f £50000+). I wrote to them about it. They ignored it so I submitted an amended return.

The amended it again so I amended it back. I can't be bothered listening to their music on the helpline. If it was decent music, it might be different.

Eventually, they'll ring me, I suppose........

I'll get some decent music ready to play.

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