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In July 2015 the collection of class 2 National Insurance contributions was submerged into the self-assessment tax return. This has caused calculation and payment problems for agents and taxpayers.
On 17 June 2020 HMRC provided a statement to the professional bodies confirming that most people are correctly registered for class 2 National Insurance. It went on to say that when this is not the case usually ‘the underlying reason is that the self-employed person has not correctly registered as self employed. They have registered for self assessment (on the CESA system) but not registered for class 2 National Insurance contributions (on the NPS system). As it is the NPS system that determines the amount of class 2 National Insurance contributions due this prevents class 2 being included in self-assessment calculations.’
HMRC said it was unable to change its systems to deliver an automated solution because ‘any such...
