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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: coding out: class 2 NIC debts: increases to coded out debts

Increases to debts coded out may be made if we:

  • increase the customer self-employment period
  • reduce a period of Small Earnings Exemption.

When an increase to a debt is processed, NPS(NI) does not notify NPS(PAYE) and the amount coded out is not increased.

If there are any debts for the same tax year with a collection area of ‘Sent to IDMS’, an amendment will be sent to IDMS to increase the debt.

If there are no debts for the same tax year, the increase will remain in NPS(NI) and will be included in the next coding scan.