HMRC Class 2 NIC Classification Foul Up

My thanks to a loyal reader who flagged up an issue with HMRC's Class 2 NIC classifications and an HMRC system update that went wrong:

"We had a client, self employed for many years, and submitted his 2016 tax return as normal. This year the Class 2 NIC is collected with the self assessed tax, and was duly included in the calculation.

HMRC immediately issued a fresh calculation, excluding the Class 2, so I phoned to ask why? After a long delay I was put through to their NIC office where I had to explain the problem all over again.

It appears that the client was listed as a "voluntary" payer of Class 2, something apparently reserved for exam markers and similar taxpayers. It also seems that their update of their system went wrong, and a number of taxpayers (sorry customers) were wrongly flagged.

He advised that he would amend the client's status, and that I should file the return again. I pointed out that we'd already filed a correct return, and that the fault lay in their system, so it was up to them to correct their own error. He didn't see it that way.

Welcome to the world of HMRC, where they screw things up and expect us to fix them....

.....I've now written to them quoting a price for re-filing tax returns and requesting confirmation that they will reimburse the client."

Has anyone else experienced this problem?

Tax does have to be taxing.

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