HMRC estimates that between 10,000 and 20,000 self-employed taxpayers who filed their self assessment tax return for 2024/25 before 29 September 2025 may have been affected by this issue. HMRC says that it will make all necessary corrections by the end of December 2025 and that taxpayers and agents do not need to contact HMRC to resolve the issue.  

What caused the issue? 

For 2024/25 onwards, sole traders and self-employed partners do not need to pay class 2 NIC for a tax year if their profits for that year are equal to or more than the small profits threshold (SPT). Instead, class 2 NIC is treated as having been paid. The SPT is £6,725 for 2024/25 and £6,845 for 2025/26.  

Earlier in the year, it was reported that some taxpayers, having filed a tax return showing profits equal to or in excess of the SPT, received a SA302 from HMRC with a correction message showing that class 2 NIC was payable. This was brought to the attention of HMRC who acknowledged that the SA302 was incorrect.  

Individuals with profits below the SPT continue to have the option of paying class 2 NIC on a voluntary basis in order to help maintain their entitlement to state benefits.  

Further information 

• Issue 137 of Agent Update - GOV.UK
• HMRC working on solution for class 2 NIC issue | ICAEW