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Outstanding class 2 NICs to be collected through PAYE

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From April 2014, HMRC may collect outstanding class 2 NICs by adjusting the tax codes of individuals in PAYE employment or who are paid a taxable UK-based private pension. An insert included with the payment requests sent out by HMRC to taxpayers who owe class 2 NICs earlier this year informed customers of what they needed to do, including letting HMRC know if they have stopped being self-employed.

The payment requests also said that if not paid, HMRC may collect the debt through an individual’s PAYE code from April 2014 or pass it to a private debt collection agency for recovery on its behalf. Customers who did not pay or contact HMRC are likely to get an annual coding notice (P2) between January and March 2014. This will show the class 2 NICs debt to be collected from April 2014. If a customer does not want the outstanding debt to be included in their tax code, they will need to pay the full amount

Issue: 1191
Categories: News , Private client taxes