The Book-keepers Forum (BKF)

Post Info TOPIC: HMRC NIC Correction
Jay


Senior Member

Status: Offline
Posts: 262
Date:
HMRC NIC Correction


Good afternoon all.

Having recently submitted a client's SA Return I was surprised to receive a correction from HMRC, as I tend to undertake manual calculations (old school ) as well as using Taxcalc.

The client has 2 PAYE employments, and one self employment and a high rate taxpayer.

The issue arises with the treatment of NIC from multiple sources. 

HMRC's computer system ignored the reduced liability due to Primary Class 1 Contributions,  and calculated the Class 4 NIC  in the normal manner creating a higher liability than due.

I  spoke with HMRC, who were helpful in as much that their NIC knowledge may be limited and advised they could not follow my calculations. I was advised to contact the NIC Office, which I did.

They were able to undertake their own manual calculations and agreed my figures. As I understand, this needs to be referred to other Departments to put back our figures  ( and I suspect to correct the system.)

I have posted this to empasise that HMRC calculations for NIC in certain cases may be incorrect at this time.

 

BW

 

Jay

 

 

 

 

 

 

 

 



__________________


Guru

Status: Offline
Posts: 1313
Date:

 

Hi Jay

Thanks for the post and making people aware of the problem, the only problems I have had of late has been with Class 2 which have now been resolved. 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 8646
Date:

Thanks for the heads up Jay.

Roll on MTD! (not)

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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