HMRC to collect class 2 NICs from PAYE codes


HMRC has said that it will collect outstanding class 2 national insurance contributions (NICs) from PAYE tax codes from April 2014.

This is aimed at those who were self employed but have now gone into PAYE or are paid a taxable UK based private pension, but still owe the Revenue class 2 NICs from when they were self employed.

HMRC said it had been sending payment requests since April 2013 to customers who owe class 2 NICs, and if they’re not paid, the debt can be picked up through their PAYE code from April 2014 or via a private debt collection agency.

If a client has received an incorrect payment request, the Revenue has asked...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

About Rachael White


Please login or register to join the discussion.

01st Nov 2013 14:55

Practically how many will this effect?

I would be surprised if this brings in much dosh. One thing self employed people invariably make sure they pay is their small amount of Class 2. It will only effect those who have been self employed, ceased for whatever reason and then were lucky enough to go and get themselves a PAYE job.

Thanks (0)
01st Nov 2013 16:25


Beware the NI cock[***]-up. Several times I have closed down a self-employment, only for the NI numpties to keep demanding class 2 - "we have to be told separately". So you ring them up and tell them, "no, we need it in writing" - you heard me, so write it down. But when they want something, they're quite happy to communicate with the PAYE & SA people. This week, a client paid a class 2 demand, and he has NEVER been self-employed. This is not a good move.

Thanks (0)
By djames
04th Nov 2013 12:44

one rule for them . . .

Agree with Silverghost on this one.   Every year we get cases of incorrect NI demands for Class 2 NICs where an individual has ceased in business.   Because the NI lackeys in Longbenton take about 6 months to reply to any written correspondence, we always advise our clients to cancel their direct debits first and worry about the paperwork later - eventually HMRC will write to say 'why have you stopped paying NI' and the response 'I ceased in business on . . . .' is then normally properly recorded by their 'system'.   If you try and do things the other way round - ie try and advise them that your client has ceased in business, could you please stop sending demands - this seems to be filed in their 'not sure what to do with this' pile and subsequently ends up being binned.

This will just mean that many of these incorrect NI demands will now be incorrectly collected via a PAYE code, which, I imagine, will create more work in trying to get it back.

In the face of the CIS debacle, I can't help but think that HMRC are deliberately trying to create a 'them' and 'us' situation with agents.  Speaking for myself, its working.

Thanks (0)
05th Nov 2013 09:51


Why not collect it (or indeed rebate it) via the tax return in the first place?

The whole system of class 2 and 4 is a plain daft job creation scheme for micro amounts of tax.

So many people pay 2 when they ought not to, or don't pay it when they should. There seems to be almost zero checking between SA returns and contributions. 


Thanks (0)

Related content