Share this content
3

Class 2 NI

Underpaid Class 2 NI

Didn't find your answer?

Client wanted to pay voluntary Class 2 NI within her total tax/NI bill of £421.59, so she paid £421.59 before the end of January (they don't let you pay it through SA if it's after then) so all seemed OK. Turned out there was 7p interest brought forward from an old year, and so they only transferred £153.33 instead of £153.40 to her Class 2 NI account which means she does not get credited with any NI contributions for that year. How do HMRC get away with it ? Why didnt the computer just carry forward the 7p or knock it off the Class 4 NI ? (that's rhetorical btw, I do know they are trying to get out of paying her pension) And I've been on the phone for an hour and now am now transferring 7p to make her get a full year. So something to be careful of in the future.     

Replies (3)

Please login or register to join the discussion.

avatar
By vinylnobbynobbs
19th Feb 2020 13:34

Write to them and remind them that they are obliged to allocate payments firstly against liabilities (Tax & NI) and then secondly against interest charges.

Despite their protests, they must do this.

Thanks (0)
Replying to vinylnobbynobbs:
By kenny achampong
19th Feb 2020 13:43

Really ? Is that the rule ? Too late now though, I've paid the 7p.

Thanks (0)
Replying to kenny achampong:
avatar
By David Heaton
24th Feb 2020 10:11

Yes, it's general law, not specific to NI. If a debtor pays an amount to a creditor and specifies what it is for, the creditor can't simply choose to re-allocate it against another, older, debt. The HMRC computer has allocated the payment automatically but incorrectly. Submitting an SA return showing a full amount of Class 2 due and then paying that amount is specific enough. The client owed the 7p anyway, so he's lost nothing by paying that.

Thanks (1)
Share this content

Related posts