The Class 2 and Class 4 National Insurance Problem
Being self-employed you have to pay both Class 2 and Class 4 National Insurance Contributions (NIC). Class 2 NIC is a fixed weekly amount, currently £3.15.
10 June 2024
Being self-employed you have to pay both Class 2 and Class 4 National Insurance Contributions (NIC).
Class 2 NIC is a fixed weekly amount, currently £3.15. This contribution goes towards the amount of state retirement pension you will receive. Of late we have had several instances where we have declared profits from self-employment and shown the amount of Class 2 NIC due on the tax return and so is included in the tax computation we produce.
However, for whatever reason, after the return has been captured, HMRC amend the return to remove the Class 2 NIC charge. Yes, we know it is unbelievable. If you need help with this problem, please contact us to provide you with a solution.
It is important that you don’t leave this problem unchecked as it could seriously impact your finances later in life.
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