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nic class 2 removed

on sa302 sent by hmrc

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hi. received several self-employed amended tax calculations (SA302) from HMRC having class 2 NIC removed. how is that possible? and what should it be done to bring it back? thanks.

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By penelope pitstop
11th Feb 2020 17:45

I have a couple of these to deal with.
Think it is because client not registered with Class 2 NIC unit as self employed, although tax return includes self employed data.
Perhaps someone could provide the correct Class 2 department telephone number for us to phone to get them to update their records.
Then the SA302 should be amended automatically, methinks!
Unless anyone knows better.

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By SXGuy
11th Feb 2020 18:08

It depends on the reasons.

There were a few people who got missed out on class 2 for whatever reason and a phone call can correct it.

Or another reason can be that they were previously register for SA for something like rental income and have since gone in to self employment. In which case they need to register for class 2.

In either cases a phone call will work or you can re register them as self employed and tick they already have a utr and put the utr number in.

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By Paul D Utherone
11th Feb 2020 18:14

Generally means that they're new s/e or partners & either didn't complete a CWF1 or SA401 to register for SA, or the form hasn't processed by HMRC/NICO, and so didn't get set up on the NICO system.

If not set up for C2NIC on the NICO system the, despite submitting S/E or Partnership pages with a return, HMRC will reverse any voluntary claim to pay the correct contributions.

You need to contact NICO to get the client registered on their system, which will then propagate through to HMRC SA systems and issue an amended SA302 to recharge the C2NIC. Sometimes it can be done with a call to the ADL, but can depend who you get IIRC.

Ain't it wonderful to have a joined up, state of the art, 21st century tax system !?

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By lionofludesch
11th Feb 2020 23:49

It's not always the contributor's fault. Sometimes it's down to HNRC not transferring records properly. Nevertheless, whatever the cause, the contributor is not properly registered for Class 2

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By Rammstein1
12th Feb 2020 07:58

I registered one client Monday last week and the Class 2 NIC was on his record on Wednesday last week. Just use the CWF1 form below.

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By SteLacca
12th Feb 2020 08:30

I'm still a believer in simply objecting to HMRC's amendment. That way they either have to open an enquiry or fix their damned systems.

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By K81
12th Feb 2020 08:53

unfortunately these cases are automatically amended by the computer & no actual human looks at the case to see that self-employment schedules are included. a quick phone call to NICO on 0300 200 3500 should work & their system updates virtually overnight.

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By justsotax
12th Feb 2020 09:31

nothing more mind blowing than the Revenue 'correcting' a tax computation to remove class 2....which erm includes self-employed example of how absurd the Revenue systems are...…...but hey its alright MTD will sort it....

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