Since 2015-16, most Class 2 NICs are collected by Self Assessment (SA). In order for this to happen the National Insurance record must be noted that the person is liable to pay Class 2 NICs through SA, and this information must transfer through to the SA record. If this does not happen, no Class 2 NI will be charged by the SA system, even if income from self employment is included in the tax return.
Without being able to examine the actual record, we are unable to confirm why Class 2 NICs have not been requested by SA before now.
We are assuming the income from self employment is at or above the small profit threshold? This changes each year and is £6475 for 2020-21. If income is below this level, a request must be made on the tax return to pay the Class 2 NICs on a voluntary basis.
You are correct, there would be a case for paying the arrears at the original rate if it is found that the lack of charge is due to an error on our part, this can be investigated when the arrears are confirmed.
It is now too late to pay the arrears through SA, during the conversation with our helpline, payment instructions should have been given for the arrears and the onus would then be on the customer to make the payment.
No letter would be issued unless one was specifically requested. If a letter was requested, the details would have been passed to a clerical section. Unfortunately, the area who would issue such a letter are currently dealing with work received on 26 July 2021 and so it may be some time before the letter is issued (if one was requested).
We appreciate that you do not wish to complete form 64-8 and become your friend’s agent. For your further reference, we are only able to hold details of one authorised agent on our records, so if this was done, the previous agent details would be removed.
Going forward, we suggest your friend calls the NI helpline again and asks for the payment details to be given to her over the phone, during this call, she could also establish if (and when) a request has been sent to the clerical section for a letter to be issued confirming the payment details. You may wish to be present during this call, and after confirming her identity, your friend can give our advisor permission to speak to you about her tax and NI, however this authorisation would be for that particular call only.