Coronavirus still causing HMRC issues
It transpires that HMRC’s system has not accepted some voluntary Class 2 NI payments for 2020/21, meaning entitlement to the state pension might be affected. Do you need to take action to resolve this?
Voluntary Class 2 NI is generally paid by people who are self-employed but do not exceed the small profits threshold. For just £3.15 per week, you can preserve your entitlement to state benefits and the state pension if you fall into this category - far more efficient than paying Class 3 NI at £15.85. However, there has been an issue with some 2020/21 tax returns rejecting the voluntary NI entry. At the time the returns were filed, HMRC extended the filing deadline to the end of February 2022 due to the pandemic. Only the tax returns filed after the usual deadline of 31 January 2022 are affected and an error message is displayed explaining that it is too late to pay voluntary NI. This could mean that the voluntary NI was either not paid, or it was paid and your self-assessment account is simply sitting with an unallocated credit for the amount.
HMRC will be writing to everyone in December to explain how this can be resolved. If this affects you but you do not receive a letter from HMRC you can call the National Insurance Helpline on 0300 200 3500. It's worth checking whether you already have enough qualifying years for the state pension before making a further payment to HMRC. You can check your NI record in your personal tax account.
Related Topics
-
Founders' relief: a closer look
The Budget's new Founders' Relief sounds remarkably generous, offering a 10% capital gains tax rate on up to £10 million of gains from selling shares from April 2027. However, a closer look at the proposed qualifying conditions suggests that relatively few business owners will benefit. Why might the relief be so difficult to claim?
-
MONTHLY FOCUS: 2026 BUDGET SPECIAL
Budget 2026 contains a mixture of tax rises, new reliefs and changes to the way businesses and individuals will be taxed from 2027 onwards. Savings and property income will face higher rates, the lifetime limit for Business Asset Disposal Relief will fall, a new founders' relief is planned and several allowances and business incentives are changing. Which measures matter most, and is there anything you should do before they take effect?
-
Autumn Budget 2026 – what are the key tax announcements?
The Chancellor delivered the Autumn Budget on 28 October, announcing a mixture of tax increases, new reliefs and changes to the way tax is administered. Although the headline rates of income tax, National Insurance (NI) and VAT remain unchanged, there are some significant changes affecting business owners, landlords and private individuals. What are the main announcements?




This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.