Heads up! - Class 2 NI conts. missing from some HMRC records

Hi all,

This is a heads up as I've fallen foul of an HMRC computer error that is a known problem - except neither the DWP nor HMRC realised it applied in my case until this week.

Anyone self-employed and on a low income where they're paying Voluntary Class 2 NI contributions, for tax year 2022-23, not everyone's contributions were correctly allocated so it shows as a gap on your record. When I logged into my self assessment account, 2022-23 showed as year not paid in full, so I trusted that I hadn't paid. Bit odd as for my last 10 self-employed years I've always made my voluntary class 2 payments, but I must have just forgotten that year, right?

I found this out as I am applying for New Style ESA, which needs two prior years of NI credits to qualify. I was told by someone at the DWP in late June that I had this gap, but I could backpay it, and once done, my ESA claim could continue. I paid £175 immediately, HMRC said it would take a while to be allocated, but they would phone me when it was done.

Finally on Wednesday I spoke to someone at HMRC who said they could see the payment, and they were able to allocate it. And then they made a comment about a computer error for that year, but my payment was now there and DWP would process my claim.

Yesterday morning I called DWP to ask if my ESA claim could now be processed. The staff member said they could see my payment, but my ESA would have to wait two more weeks because there was a 6 week penalty for late NI credit payment... first time in multiple calls I've been told that, annoying as hell, but I was still wondering about the computer error so I looked it up, and then looked back at my tax returns and bank statements from Jan 2024, and there was the payment. I had paid those NI contributions on Jan 31 2024!

So for 4 weeks I've been effectively on hold, with no movement in my ESA application because of a known error, when I had spoken to several people at both HMRC and DWP about my missing NI credits. Surely there should be a flag on the systems for anyone self employed with missing credits in 2022-23 that this may be the case!

I've paid £175 for nothing, when I can't really afford that, when I'm recovering from surgery and could really do without the stress of this. It might take another week for DWP to deal with the claim, but at least I now know I will qualify, and not also have that surprise 6 week penalty.

I'll be complaining formally to both HMRC and DWP, and asking that they consider an alert for 2022-23 Class 2 NI credits (I doubt they will but I can at least try!) so others don't get caught out - but how many other people have already been screwed by this?!