ahhhh so hmrc actually know all the people that havent been billed class2NI in error due to mismatch and are potentially keeping silent about it - lovely jubbly.
or perhaps is it the more innocent one where the individual has not taken advantage of the available to pay voluntary payment so its sensibly left open in case they change their miond - ahhhh this one makes much more sense than my conspiracy theory
cheers Not anonymous.
Not sure it's people who haven't been billed in error, it could be as simple as they were eligible to make a voluntary payment of Class 2 and chose not to.
According to some seemingly very knowledgeable posters on one of the forums on MSE that usually relates to a year where a tax return was filed with self employment income but no Class 2 was paid.
Only if you are a higher rate taxpayer, net paid pension contributions (scheme gets HMRC rebate to cover basic rate relief ) should increase your basic rate band reducing higher rate tax paid.
The op has made "net pay" contributions, your scenario is "relief at source".
What the op is missing is that they have received the maximum relief already by virtue of their taxable pay being reduced.
There is nothing to include on the SA return. And they aren't missing out on anything.
Op - try calculating your liability with the salary, not taxable pay, from your net pay contribution job and you will see you aren't missing out on anything.
My answers
No, a phone call isn't really necessary to pay voluntary NI.
This is explained on gov.uk in the "If you do not have an HMRC payslip" section here.
https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post
Not sure it's people who haven't been billed in error, it could be as simple as they were eligible to make a voluntary payment of Class 2 and chose not to.
But might now be having second thoughts.
According to some seemingly very knowledgeable posters on one of the forums on MSE that usually relates to a year where a tax return was filed with self employment income but no Class 2 was paid.
LITRG have useful info on this, although you will need to know the specific student loan type.
https://www.litrg.org.uk/tax-guides/students/student-loans/plan-2-studen...
True but the update on the Self Assessment account would be made when the return was processed, not when the tax code is issued.
It's an extreme option (and most certainly not a recommendation) but I believe HMRC do accept early returns for deceased cases.
Although as that would be a paper return I suspect an online one filed in April would have a quicker outcome!
The op has made "net pay" contributions, your scenario is "relief at source".
What the op is missing is that they have received the maximum relief already by virtue of their taxable pay being reduced.
There is nothing to include on the SA return. And they aren't missing out on anything.
Op - try calculating your liability with the salary, not taxable pay, from your net pay contribution job and you will see you aren't missing out on anything.
What a coincidence, the difference is exactly £5,028.
David Ex's comment seems wholly appropriate!
"Apart from the one client where they DID code out his tax liability when we had asked them NOT to".
Given this comment are you 100% certain that you are ticking/not ticking the box correctly in your own software?
And that it's the correct box, not the other one for current tax year updates?
Failing that how confident are you that the clients circumstances meet HMRC's rules for coding out underpayments?
If the op ever returns to this thread after finishing their (humble) pie they could explain where the code deviates from HMRC's official explanation,
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye76086
Bullet 4 in the Tax code calculation section might be of particular interest.