Self Assessment Incorrectly Charged Class 2 NIC's

pennypincher3562

Hi

I am currently filling out my self assessment online. My 'business' is more like a hobby, and makes very little money, but I declare it nonetheless.

I've got to the end of return, and see that they are trying to charge me £145.60 for Class 2 NIC's.

I've no idea why they are trying to charge me for Class 2 NIC's - I should be exempt as my profits are under £5965 (in fact nowhere near it.) I've checked my return, and the summary clearly shows a profit well below the £5965 threshold.

Any idea where I am going wrong?

Thanks.

[Deleted User]

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503322/sa103s-2016.pdf

Did you tick the entry corresponding to box 36 on the attached?

pennypincher3562

[Deleted User] wrote:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503322/sa103s-2016.pdf

Did you tick the entry corresponding to box 36 on the attached?

Thanks PurdyOaten, will check that shortly, and good to see you back after a long absence. :beer:

[Deleted User]

pennypincher3562 wrote: »

Thanks PurdyOaten, will check that shortly, and good to see you back after a long absence. :beer:

Where have I been? :

pennypincher3562

[Deleted User] wrote:

Where have I been? :

You lost your password, I presume. Anyway good to see you still dispensing quality tax advice.

Thanks.

*Rainbow*Warrior*

I'm having the same problem but the link posted is not displaying properly on my pc. Please can someone tell me which box I need to tick to show my profit is under the threshold?

EDIT - Is this the box right below the £145.60 it says I owe? I have selected No to say I don't want to pay NI voluntarily, but the £145.60 figure is still showing as owed???

[Deleted User]

*Rainbow*Warrior* wrote: »

I'm having the same problem but the link posted is not displaying properly on my pc. Please can someone tell me which box I need to tick to show my profit is under the threshold?

EDIT - Is this the box right below the £145.60 it says I owe? I have selected No to say I don't want to pay NI voluntarily, but the £145.60 figure is still showing as owed???

The problem is that we cannot access the online form unless actually to fill it in - we do not know what box you are highlighting! I posted a link to the self-employed section of the manual form - Google SA103 if you cannot open my link.

sheramber

*Rainbow*Warrior* wrote: »

I'm having the same problem but the link posted is not displaying properly on my pc. Please can someone tell me which box I need to tick to show my profit is under the threshold?

EDIT - Is this the box right below the £145.60 it says I owe? I have selected No to say I don't want to pay NI voluntarily, but the £145.60 figure is still showing as owed???

Have you read the question correctly. Does it not say to tick the box if you wish to pay it voluntarily

pennypincher3562

I have completed my online tax return, and managed to fix the issue by setting the answer to 'do you want to pay Class 2 NIC's voluntarily?' to NO.

I have just re-read RainbowWarrior's post however, and am afraid I don't know what is causing their problem with Class 2 NIC's.

glider3560

pennypincher3562 wrote: »

I have completed my online tax return, and managed to fix the issue by setting the answer to 'do you want to pay Class 2 NIC's voluntarily?' to NO.

At least that question on the form worked for you. Whether I chose 'Yes' or 'No' the that question, an error appeared in red below the box and it wouldn't allow me to proceed. HMRC's helpdesk didn't seem to know what the issue was, so suggested I submit a paper tax return. Six weeks later, still waiting for my tax calculation and refund...!

*Rainbow*Warrior*

sheramber wrote: »

Have you read the question correctly. Does it not say to tick the box if you wish to pay it voluntarily

Managed to work my way through the link although it didn't display properly on my computer. I know the question shown in the link above said put an X in the box, but in fact when you come to the question on the self assessment form it's a drop down menu and you have to choose Yes or No to say if you want to pay the contributions voluntarily.

I chose the No option but it still says I owe £145. I expected it to vanish. The top of the page clearly states, 'If your profits are £5965 or more you must pay Class 2 NICs. For 2015 to 2016, Class 2 NICs are £2.80 a week. Your self-employment record shows you owe £145.60.'