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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: compliance revenue recording: registering for self-employment - class 2 NIC

If during the course of EC related enquiries it is established that an individual who is correctly self employed has not registered for SA or Class 2 NIC purposes, you should follow the guidance below.

Where the relevant documentation has been completed but we failed to register the individual on one or other of the systems

  • take steps to correct the situation.

No compliance revenue is scorable as the error was internal.

Where the individual has

  • registered for SA but not for Class 2, or
  • resumes self employment after a period of employment

you should

  • notify NIC&EO via E-mail on ECR309/CIT309 (available via SEES ECR/CIT300 series) making sure that the self-employment start date (and end date if appropriate) entered on the stencil is the same as that held on the SA system, and
  • in Caseflow score the amount of Class 2 NIC recoverable as

    • Compliance Check type - Other Compliance Check
    • Inaccuracy Category - Self Employment Registration
    • Inaccuracy description - Failure to register for Class 2 NIC
  • for cases working in ECS score the amount of Class 2 NIC recoverable as broader coverage under BC code R12 - Recoveries of Class 2 NIC.

Where the individual has not registered on any of our systems you should

  • notify HEG to pursue the SA and Class 2 and 4 NIC due
  • score the amount of Class 2 NIC recoverable as broader coverage as above.

It is not possible to estimate an amount of tax and Class 4 due without establishing the full facts of the self employment. This matter will be dealt with by HEG and resultant compliance revenue scored by them.