You might also be interested in
Replies (16)
Please login or register to join the discussion.
I have received calls to my my office from members with the same issue on Class 2 NIC and also where transfer of allowances is concerned. I have been advised that HMRC have stated that they hope to "fix" the nic issue in November but have no date for a fix of the surplus allowances issue but that was given me by a member who contacted HMRC helpline direct. Yet again Agents and taxpayers are caused extra work which is none of their doing. Seriously, this does not bode well for the Digital Agenda does it. Tony Margaritelli - Chair ICPA
To (hopefully) minimise C2NIC issues, before filing a Return I log into HMRC, load the client, click "Tax return options" then "Information to help you complete your tax return". This will open a page with some useful info including the amount of C2NIC payable by the client. But there's a problem. To date I've had 3 clients who don't have the "Information to help you complete your tax return" link. I've reported each case to HMRC online services and at their request I've sent screen shots. By the time HMRC come back to me the Return has been filed and HMRC incorrectly argue that the link has disappeared because the Return has been filed. I've just come across another case. Anyone else experienced this problem?
Does this imply that if the "info to help you complete your return" screen shows a Class 2 NIC liability of £145.60 then a return filed with that amount on it won't be "corrected"? If so, is the problem limited to those cases where this screen does not show that figure? ie is this error going to affect every SA case with a Class 2 NIC liability, or only some cases where the return shows a liability, and HMRC (incorrectly) doesn't think there should be one?
Not quite - there have been cases where HMRC have issued an SA302 which deducted C2NICs from the annual liability instead of adding it.Does this imply that if the "info to help you complete your return" screen shows a Class 2 NIC liability of £145.60 then a return filed with that amount on it won't be "corrected"?
I have a slightly different perspective on the class 2 position as checking the information on the HMRC website has so far revealed 2 clients who have continued to pay class 2 for many years after ceasing self employment in the mistaken belief that this was required to qualify for a state pension. One has been in full time employment, the other in receipt of child benefit so the class 2 has been a gift to the treasury. The NI helpline inferred that when I give them the self employment cessation date they would be able to correct the position and make a refund but I wonder how many years they will be prepared to repay?
I completed my own Tax Return today using HMRC's own software (the software is awful - I use third party software for all my client's returns but deliberately endure HMRC's software for my own return just to experience what the great unrepresented have to put up with). Anyway, it told me that I have no C2NIC liability! It did give me a link to another part of GOV.UK to check my C2NIC but when I clicked on the link it took me to a GOV.UK page which said the service was not yet operational! C2NICs are a relatively small change. If HMRC can't cope with this it proves that MTD will be a disaster.
Well we have submitted a Tax Return to HMRC using third party software and HMRC have calculated the full class 4 NIC, disregarding our calculation, where we have adjusted as the client was both employed and self employed in the year and would have paid more than the maximum due.
Having spoken to HMRC's advisor, the first one said class 1 NIC has nothing to do with the Class 4 NIC calculation!!!
Second one referred us to the NIC department.
Has anyone else experienced such an issue?
What about the situation for people who have previously had NIC deferment, but from 15/16 they didn't have to apply for deferment as HMRC was going to calculate that they did not overpay class 2 NIC based upon their employed and self employed income. On completing a self assessment online for a client it does not give me any option to adjust the automatic addition of the £145.60 but simply adds it to the self assessment account - even though class 1 NICs are well over the limit.
It s NOT a [***] up how dare you!!!
To classify as [***] up infers HMRC only SOMETIMES err.
This is indeed SNAFU situation normal all " f----d" up ......
I too have received notification of a couple of CIS clients who have received a tax refund different from the amount as per the correct calculation. This gives the impression that us accountants dont know what we are doing.
So question is... what to do? I will be telling clients obviously but do I tell them to pay the extra over or wait for a couple of years for HMRC to get their act together and send a separate demand?
I even sent a 'information sheet' round to my clients warning them that the extra would be due in one hit.
If they pay then trying to get an overpayment is liking getting blood from a stone.
Well HMRC are doing something this November about Class 2 NICs - I've just received a demand letter for £509 they say I haven't paid. Considering that I always use the HMRC portal to report my earnings and I've been paying what they tell me I owe them I found this very painful. Can't they get anything right?!
FYI as at today HMRC's TR software still has C2NICs error. If year earnings are below the SPT and you elect to pay C2NICs voluntarily an error is reported. HMRC's advice is not to elect to pay voluntarily! It seems to affect taxpayers who cancelled their C2NIC DD after the last DD was collected in July 2015. HMRC have no idea how and when they're going to fix it.
HMRC announced C2NICs were moving to SA in November 2014. Two years later and the software still isn't working. Meanwhile HMRC recon they're going to be ready for MTD in 17 months!
This is still not fixed! Best to call NI departement to resolve but call the Agent Number and ask to be transferred as you will get through quicker.
Katrin, did the ADL transfer you direct to someone in NICO or put you in the queue. When ADL transferred me they put me in the queue and I had to go through the voice unrecognition system.
Hi Kevin
I think I was put straight through, there was a slight delay before the phone call was picked up but I don't remember going through the voice recognition system.
Katrina