Possible gap in NI records of low-earning self-employed people due to HMRC error

LITRG advises that some voluntary Class 2 National Insurance contributions (NICs) - that can be made by self-employed taxpayers with profits under £6,725 - were not transferred to the taxpayer’s NI record in 2022/2023 but refunded to them by HMRC.

LITRG adds that -

‘In the absence of any action, this could mean that taxpayers miss out on a qualifying year of National Insurance contributions.

LITRG is calling on HMRC to identify and contact those affected to make them aware of the issue and arrange for the voluntary Class 2 NICs to be paid and properly reflected on their National Insurance record.

In the meantime, LITRG is recommending that taxpayers who have received a refund of their voluntary Class 2 NICs but who want to retain their qualifying year for National Insurance purposes for 2022/23 phone HMRC’s National Insurance helpline on 0300 200 3500 to make arrangements to pay back the refunded amount. It is not possible to pay the amount directly to your self-assessment account.’

More: HMRC error means self-employed workers could lose out on National Insurance related benefits