The Chartered Institute of Taxation (CIOT) has highlighted issues with HMRC's 2024-25 Self Assessment calculations. Several individuals have reported that Class 2 National Insurance Contributions (NICs) are being incorrectly included on SA302 tax calculations. UPDATE June 2025: HMRC provided an update on the issue to the CIOT.
From 6 April 2024, compulsory Class 2 NICs were abolished. Self-employed individuals now receive a credit for Class 2 NICs, provided their profits exceed £6,725.
Individuals with profits below £6,725 can choose to make voluntary Class 2 contributions to secure access to contributory benefits.
The CIOT has highlighted that, following a 2024-25 Self Assessment return submission, a number of taxpayers who are not required to pay Class 2 NICs, and are not making voluntary payments, have had SA302 calculations issued by HMRC which include a figure for Class 2 contributions.
The incorrect SA302 calculations will either have:
- A Class 2 NICs liability totalling £179.40, which should not have been included.
- A Class 2 NICs liability totalling £179.40, which should not have been included, with the tax liability being increased by double this amount.
At present, the CIOT is not aware of any errors other than the two set out above. They ask to be made aware of any other errors that differ from these examples.
The matter is currently being investigated by HMRC.
UPDATE: 26 June 2025
HMRC have advised the CIOT that they are working to resolve the issue, and:
- Action has been taken to correct the Class 2 NICs figure in circumstances where the information held allowed HMRC to do so.
- Clients to whom this applies will have received a message to let them know.
- HMRC will correct the records of all other affected taxpayers after the issue has been resolved.
- Again, HMRC will notify those taxpayers when their records have been corrected.
- There is no need for taxpayers or agents to contact HMRC.
- HMRC are expecting to have the issue resolved by the end of July at the latest and will be correcting records before any incorrect amounts due impact the tax owed for 2024–25.
- There will be no long-term impact, and any taxpayers who have made a payment will either be refunded or have a credit added to their Self Assessment statement.
Useful guides on this topic
National Insurance: Rates
What are the current National Insurance rates? What rates will apply to next year?
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your own Unique Tax Reference code (UTR).
Self Assessment Return 2024-25: What's new?
2025 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2025.
External link
CIOT: Class 2 NIC: Self-Assessment Computation Issues for 2024/25