Outstanding Class 2 NICs

Class 2 NICs – What you Need to Know


From April 2014, HMRC may collect outstanding Class 2 National Insurance Contributions (NICs) by adjusting the tax codes of customers in PAYE employment or receiving a UK-based private pension.

The tax authority is now sending payment requests to customers showing any Class 2 NICs they owe.

Customers will be asked to pay or to contact HMRC if the payment request is wrong on account of instances, for example, in which a customer has stopped trading.

The payment requests also say that not paying may mean HMRC will collect the debt through their PAYE code from April 2014 or pass it to a private debt collection agency for recovery.

Customers who do not pay or contact HMRC after getting a payment request may get a PAYE Coding Notice between January and March 2014, indicating that the Class 2 NICs debt will be collected from April 2014.

Clients who are no longer self-employed may not owe HMRC Class 2 National Insurance Contributions. If this is the case we will ensure that all payment requests are checked and we will inform HMRC if these are wrong.

HMRC can be informed of whether a client has sold or closed a business through an online form which covers self – assessment and National Insurance.