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Collection of class 2 NIC

Class 2 NIC

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I know that Class 2 NIC is now being collected via the SA system.  However, when completing a SA return for a client - I have used HMRC online and Commercial Software (for different clients) -, when I check the tax calculation, there is no mention of the Class 2 NIC.  Only Tax & Class 4NIC.

There is a box on the return to tick if your profits are less than £5965 and you want to volunteer to pay class 2 (Box 100 on page SEF5).  

Will HMRC be adding this seperately to the SA bills they issue, so I will need to explain to a client that the tax calc needs to have the class 2 NIC added ontop?  I can foresee a few upset clients, when HMRC ask for £143 (ish) more than I tell them.

Am I missing a box to tick on the SA form?

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By iknell
17th May 2016 13:11

It is my understanding that Class 2 is now automatically added to the SA bills when issued if applicable. I had this issue with the software I was using until they updated it to take into consideration Class 2 NIC

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Morph
By kevinringer
17th May 2016 13:34

HMRC knew that C2NICs would be collected with the 2015-16 SA record. We accountants also knew. So did the software industry. We accountants thought the software industry and HMRC would create a useable system, but they didn't really understand what was going on from our perspective and we're left with this half-soaked system that is giving us all grief. This is a tiny area of IT/tax that HMRC and the software industry got wrong. Image what they'll do with MTD.

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By Helen H
17th May 2016 13:42

So it's not just me then? There's not a box to tick that I've missed? I'm not going mad then, that's good. I just need to add the class 2 NIC liability onto what I tell the client to pay - simples!!!!!!!!

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By Matrix
17th May 2016 22:34

Are you using HMRC software? If so then it should pull in the NI figure. If it does not then the client may not be registered for Class 2, I have already had this. If it is third party software then I expect you enter it but I don't know what would happen if the client had not registered for Class 2.

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Morph
By kevinringer
17th May 2016 14:38

From what I understand, HMRC ignores whatever you input as C2NIC and uses whatever it has on its systems. Third party software includes in its printed calculations whatever you input as C2NIC but does not transmit it to HMRC. Our software people tell us that next year third party software will pull the figure from HMRC to pre-populate the return. This is consuming a lot of agent time just for £145.60. Between this and Marriage Allowance I don't know which HMRC has made a bigger shambles of. Roll on MTD.

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