If you’ve received a letter or revised tax calculation from HMRC recently regarding your 2024–25 Self Assessment return — particularly about Class 2 National Insurance (NIC) — you’re not alone. Many self-employed individuals are receiving similar updates, and in most cases, no action is required.
This post explains what these letters mean, why you may be seeing changes to Class 2 NIC, and what (if anything) you need to do.
What the letters are about
The HMRC letters typically refer to a revision or correction in relation to Class 2 NIC. In many cases, they state that figures have been updated “in line with information we hold.” For some clients, this means Class 2 NIC has been amended to £0, or a charge has been added or adjusted.
If you’re a client of Childminder Accountancy Services Ltd, please note:
- I receive copies of any such updates directly, so there’s no need to send them to me
- I’ll be reviewing these as part of the usual Self Assessment process
- If anything needs to be corrected, I’ll be in touch
Why is Class 2 NIC showing as £0?
As part of changes announced by the government, from the 2024–25 tax year, the rules around Class 2 NIC for the self-employed have changed.
Here’s a summary:
- If your profits are over £6,725, you will automatically receive a National Insurance credit for State Pension and benefit entitlement — without needing to make a payment
- If your profits are below £6,725, you can still choose to pay Class 2 voluntarily if you want to maintain your contribution record
- As a result, many taxpayers will see a £0 Class 2 charge on their tax return for the first time — which is correct under the new system
This change is designed to simplify the process for many self-employed individuals and ensure access to contributory benefits without requiring payment in certain cases.
Do I need to do anything?
In most cases, no action is required.
If you are a client, I will ensure that your National Insurance position is reviewed as part of your tax return preparation. If a voluntary payment is recommended or required, I will advise you directly.
Otherwise, these letters can simply be kept for your records.
If you have any questions about your tax return, NIC status, or upcoming deadlines, feel free to get in touch.