HMRC voluntary Class 2 NICs error: check your 2022/23 record

Update 31 July 2024: HMRC have now confirmed that they will be writing to all those affected. Around 8,000 people have had their voluntary Class 2 payment refunded incorrectly, and HMRC will be writing to them to explain what steps to take next. 

Earlier this year a number of members reported concerns to us about unexpected refunds of Class 2 voluntary contributions. This was concerning as, if not corrected, the refunds could have implications for their clients’ future state pension and other contributory benefits entitlement. The issue was raised with HMRC on the Agent Forum (thread SA-44827) and our colleagues at LITRG have been pursuing this matter with HMRC as these payments are usually made by some self-employed people with low profits.

HMRC has now confirmed that a processing error occurred with voluntary Class 2 National Insurance Contributions (NICs) for the 2022/23 tax year. Unfortunately, HMRC are not able to identify who is affected and will not be alerting people to the problem. It is therefore important that anyone who hoped to pay Class 2 for 2022/23 on a voluntary basis checks their record.

Full details of the issue, and how to correct it, are available on the LITRG website.