You couldn't make it up! (heads up again)

Class 2 again

Didn't find your answer?

One tiny benefit of the transition of the collection of 2NIC from D/D to SA has, from my perspective, been the identification of a few self employed individuals who have been merrily completing S/E pages on SA returns but never bothered to register for 2NIC in the first place.

Anyway, thinking that this was another such case (HMRC removed the 2NIC from the SA that we had entered when filing the return) I discovered that he had been paying 2NIC by D/D in years up to 2014-15, so this must be for a different reason.

It turns out that he was sufficiently on the ball to cancel the D/D mandate himself at the beginning of the 2015-16 tax year.  Apparently, in these cases the class 2 NIC office treat that action as notification of cessation of S/E!!!

Ho Hum.  Onwards and upwards (and I know where I would like them to stick it upwards).

With kind regards

Clint Westwood

Replies (2)

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By lionofludesch
05th Apr 2017 11:58

Aha !!

That does explain something ......

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By TheLambtonWorm
05th Apr 2017 16:30

I've just had a client where he owed his class 2 and a bit of class 4.

Apparently HMRC returned the entire payment to him, and yet sent him a letter thanking him for the payment.

I had assumed that the payment was returned as it was late by a couple of days (I think that can now cause some class 2 issues?).

I phoned the NIC helpline and it turns out that they had never known he was self employed for class 2 NIC purposes, and that's why the payment was returned.

Ok, fair enough I thought...

I asked them to stick him in as starting 06.04.15 (he became a client after starting a new partnership) and issue a bill.

They then said they couldn't use that date, as they had self-employed earnings on record in excess of the exemption threshold doing back 6-7 years, so would have to go back further.

I said disregard the call until I've spoken to the client.

Anyway, I guess my point after this ramble, is that there must be loads of cases like this where they actually have the info in front of them where they know people owe class 2 from previous years - why not just bloody bill them for it.

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