A white piece of paper with the words 'national insurance' written in capitals is lying on a desk with a pen and calculator

Class 2 Computation Issues for 2024/25

22 May, 2025

We have received a number of reports from members about problems with Class 2 calculations for 2024/25.

Following changes announced at the Autumn Budget 2024, from 2024/25 onwards, self employed people receive a credit for Class 2 as long as their profits are above £6,725. This means they do not need to pay Class 2. Anyone with profits below this level can opt to pay Class 2 voluntarily. 

Members have reported to us that, following the submission of a tax return for individuals who do not need to pay Class 2 (and who are not paying voluntarily) they have received one of three letters from HMRC. In each case, the letter says that Class 2 NIC has been amended “in accordance with the information we hold” but for varying amounts.

Version 1 - The Class 2 figure has been “amended” to be zero – which is in line with the original submission. In this case, the letters are unnecessary.

Version 2: A Class 2 charge of £179.40 has been added to the computation, which should not have been included and now needs to be removed. 

Version 3: A Class 2 charge of £179.40 has been added to the computation, which should not have been included, and the tax liability has been increased by double this amount.

We have reported all examples received so far to HMRC and the matter is currently being investigated ‘as a matter of urgency’. We will update members on what they need to do as we learn more. At the present time, we do not need any more examples, unless they differ from those above.