Self Assessment clients who need to claim a contributory benefit soon after 31 January 2021, must make sure Class 2 National Insurance contributions payments are paid. This is to make sure their claims are unaffected, which could happen if:
· they can’t pay all of their 2019 to 2020 Self Assessment (SA) liabilities by 31 January 2021
· they’ve entered into a Time to Pay arrangement to repay those liabilities through instalments.
As Class 2 National Insurance contributions are included in their 2019 to 2020 Balancing Payment, these two options may mean they won’t have paid the necessary Class 2 National Insurance contributions payments by 31 January 2021.
If this applies to your client, they should contact HMRC on 0300 200 3822 for help as soon as possible. We may be able to allocate funds from any 2019 to 2020 SA liabilities already paid to clear the Class 2 National Insurance contributions and note their record that their Class 2 National Insurance contributions were paid on time.
Your client may incur a small amount of interest as a result, but their contributory benefit claim should be protected.