HMRC is sending out bills for a tax that no longer exists

UK households have been hit with bills after HM Revenue and Customs (HMRC) issued charges for a tax that no longer exists.

Reports reveal that despite the abolition of Class 2 National Insurance (NI) contributions for self-employed people in April 2024, the taxman is erroneously demanding £179.40 from workers, as reported by Birmingham Live.

Shockingly, some people have received demands to pay double the amount – £358.80 – as detailed in The Telegraph. Michelle Denny-West, a tax expert at Moore Kingston Smith, hit out at the error as she said: "The National Insurance Contribution (NIC) system for self-employed people has always been confusing, but the fact that HMRC cannot get this right is ridiculous.

"It's frustrating that taxpayers are expected to navigate such a complex tax system and can be charged penalties and interest for mistakes – yet they are now also expected to correct HMRC's mistakes.

"The risk here is that some people will unwittingly pay the additional NICs without realising it's a bill they should not be paying."

Helen Thornley of the ATT added: "Our members have reported a number of problems with national insurance calculations for 2024-25. Most self-employed people are not required to pay Class 2 contributions following changes announced at last year's Budget.

"However, many have received letters from HMRC which have added charges of almost £180 in Class 2, and in some instances double that amount. We have reported all examples to HMRC, who have assured us that this is being investigated 'as a matter of urgency'.

"However, it is still not clear what the reason behind the issue is. In the meantime, anyone affected should contact HMRC to ask for a resolution."

An HMRC spokesman responded to the concerns saying: "We apologise to those affected and we're working urgently to resolve this issue."