Personal Tax- Tax comp NIC2 'Treated as paid’ & Voluntary payment missing

personal-tax-tax-comp-nic2-treated-as-paid

Personal Tax- Tax comp NIC2 'Treated as paid’ & Voluntary payment missing

6th April 2023

IRIS Personal Tax- Tax comp NIC2 'Treated as paid’ and Voluntary paid missing - 2023 onwards

New HMRC/ PT rules for NIC2/4 from 2023 onwards started with the IRIS version 23.1:

NIC class 4 has changed the way it is calculated – £11908 plus, then nic2 and nic4 is calculated. If £11908 then NIC2 is needed.

Also if the income is between £6725 to £11908 then no NIC2 is not needed and this will now show as a line ‘Class 2 NIC treated as paid’ on the tax comp. This cannot be overridden.

Added in a ‘Voluntary paid’ but its still missing NIC2

The Class 2 NIC is not appearing in the tax calculation summary, even if the box has been ticked to pay voluntarily, if the profit level is between the Small Profits Threshold of £6725 and the Lower Profits Threshold of £11908.
HMRC have advised the following in their SA103S/SA103F/SA104S/SA104F notes: If your taxable profits are less than £6,725 or you made a loss, you can choose to pay Class 2 NICs voluntarily to protect your entitlement to State Pension and certain benefits. You must be registered as self-employed to pay Class 2 NICs or to pay voluntarily.

If your taxable profits are from £6,725 to £11,908 you will not need to pay Class 2 NICs, your contributions are treated as having been paid to protect your entitlement to State Pension and certain benefits. This cannot be overridden.

If your taxable profits are more than £11,908 you must pay Class 2 NICs (£3.15 a week).