Latest news with #ATT
Telegraph
10 hours ago
- Business
- Telegraph
HMRC bills workers for tax it abolished last year
HM Revenue & Customs (HMRC) has accidentally billed workers for a tax that was abolished last year. Class 2 National Insurance (NI) contributions were effectively scrapped for self-employed people in April 2024. However, workers have reported that HMRC is still adding the levy of £179.40 to their tax bill despite now being exempt. Some have been told to pay twice this amount – £358.80. Experts said it was 'ridiculous' that HMRC was getting self-employed NI calculations wrong when it was quick to fine workers for errors navigating the 'complex' tax system. A source close to the error reports told The Telegraph there were indications the problem was 'very widespread' and that the number of people affected could be in the tens of thousands. HMRC said it was 'working urgently' to resolve the issue. The reason for the error is unknown, but the problem is understood to have arisen as a result of the changes announced in the autumn 2023 Budget that came into effect for the 2024-25 tax year. The rule change means self-employed workers now receive a credit for Class 2 NI, which boosts entitlement to 'contributory' benefits such as the state pension, as long as their profits are above £6,725. As a result, they do not need to pay Class 2 NI, but can still use the credit to improve their entitlements. Anyone with profits below £6,725 can opt to pay the tax voluntarily at a rate of £3.45 per week, adding up to £179.40 a year. The Association of Taxation Technicians (ATT), a professional body for the tax compliance industry, said its members had reported receiving one of three letters containing errors from HMRC. The first said the Class 2 NI tax sum had been 'amended' to zero, which made the letter unnecessary. The second wrongly demanded £179.40 in tax, while the third demanded twice this amount. Michelle Denny-West, a tax partner with accountancy firm Moore Kingston Smith, said: 'The National Insurance Contribution (NIC) system for self-employed individuals has always been confusing, but the fact that HMRC cannot get this right is ridiculous. 'It's frustrating that taxpayers are expected to navigate such a complex tax system and can be charged penalties and interest for mistakes – yet they are now also expected to correct HMRC's mistakes. 'The risk here is that some individuals will unwittingly pay the additional NICs without realising it's a bill they should not be paying.' Helen Thornley, of the ATT, said: 'Our members have reported a number of problems with national insurance calculations for 2024-25. Most self-employed individuals are not required to pay Class 2 contributions following changes announced at last year's Budget. 'However, many have received letters from HMRC which have added charges of almost £180 in Class 2, and in some instances double that amount. 'We have reported all examples to HMRC, who have assured us that this is being investigated 'as a matter of urgency'. 'However, it is still not clear what the reason behind the issue is. In the meantime, anyone affected should contact HMRC to ask for a resolution.'
Yahoo
12 hours ago
- Business
- Yahoo
HMRC bills workers for tax it abolished last year
HM Revenue & Customs (HMRC) has accidentally billed workers for a tax that was abolished last year. Class 2 National Insurance (NI) contributions were effectively scrapped for self-employed people in April 2024. However, workers have reported that HMRC is still adding the levy of £179.40 to their tax bill despite now being exempt. Some have been told to pay twice this amount – £358.80. Experts said it was 'ridiculous' that HMRC was getting self-employed NI calculations wrong when it was quick to fine workers for errors navigating the 'complex' tax system. A source told The Telegraph there were indications the problem was 'very widespread'. HMRC said it was 'working urgently' to resolve the issue. The reason for the error is unknown, but the problem is understood to have arisen as a result of the changes announced in the autumn 2023 Budget that came into effect for the 2024-25 tax year. The rule change means self-employed workers now receive a credit for Class 2 NI, which boosts entitlement to 'contributory' benefits such as the state pension, as long as their profits are above £6,725. As a result, they do not need to pay Class 2 NI, but can still use the credit to improve their entitlements. Anyone with profits below £6,725 can opt to pay the tax voluntarily at a rate of £3.45 per week, adding up to £179.40 a year. The Association of Taxation Technicians (ATT), a professional body for the tax compliance industry, said its members had reported receiving one of three letters containing errors from HMRC. The first said the Class 2 NI tax sum had been 'amended' to zero, which made the letter unnecessary. The second wrongly demanded £179.40 in tax, while the third demanded twice this amount. Michelle Denny-West, a tax partner with accountancy firm Moore Kingston Smith, said: 'The National Insurance Contribution (NIC) system for self-employed individuals has always been confusing, but the fact that HMRC cannot get this right is ridiculous. 'It's frustrating that taxpayers are expected to navigate such a complex tax system and can be charged penalties and interest for mistakes – yet they are now also expected to correct HMRC's mistakes. 'The risk here is that some individuals will unwittingly pay the additional NICs without realising it's a bill they should not be paying.' Helen Thornley, of the ATT, said: 'Our members have reported a number of problems with national insurance calculations for 2024-25. Most self-employed individuals are not required to pay Class 2 contributions following changes announced at last year's Budget. 'However, many have received letters from HMRC which have added charges of almost £180 in Class 2, and in some instances double that amount. 'We have reported all examples to HMRC, who have assured us that this is being investigated 'as a matter of urgency'. 'However, it is still not clear what the reason behind the issue is. In the meantime, anyone affected should contact HMRC to ask for a resolution.' An HMRC spokesman said: 'We apologise to those affected and we're working urgently to resolve this issue.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
13 hours ago
- Business
- Yahoo
HMRC bills workers for tax it abolished last year
HM Revenue & Customs (HMRC) has accidentally billed workers for a tax that was abolished last year. Class 2 National Insurance (NI) contributions were effectively scrapped for self-employed people in April 2024. However, workers have reported that HMRC is still adding the levy of £179.40 to their tax bill despite now being exempt. Some have been told to pay twice this amount – £358.80. Experts said it was 'ridiculous' that HMRC was getting self-employed NI calculations wrong when it was quick to fine workers for errors navigating the 'complex' tax system. A source told The Telegraph there were indications the problem was 'very widespread'. HMRC said it was 'working urgently' to resolve the issue. The reason for the error is unknown, but the problem is understood to have arisen as a result of the changes announced in the autumn 2023 Budget that came into effect for the 2024-25 tax year. The rule change means self-employed workers now receive a credit for Class 2 NI, which boosts entitlement to 'contributory' benefits such as the state pension, as long as their profits are above £6,725. As a result, they do not need to pay Class 2 NI, but can still use the credit to improve their entitlements. Anyone with profits below £6,725 can opt to pay the tax voluntarily at a rate of £3.45 per week, adding up to £179.40 a year. The Association of Taxation Technicians (ATT), a professional body for the tax compliance industry, said its members had reported receiving one of three letters containing errors from HMRC. The first said the Class 2 NI tax sum had been 'amended' to zero, which made the letter unnecessary. The second wrongly demanded £179.40 in tax, while the third demanded twice this amount. Michelle Denny-West, a tax partner with accountancy firm Moore Kingston Smith, said: 'The National Insurance Contribution (NIC) system for self-employed individuals has always been confusing, but the fact that HMRC cannot get this right is ridiculous. 'It's frustrating that taxpayers are expected to navigate such a complex tax system and can be charged penalties and interest for mistakes – yet they are now also expected to correct HMRC's mistakes. 'The risk here is that some individuals will unwittingly pay the additional NICs without realising it's a bill they should not be paying.' Helen Thornley, of the ATT, said: 'Our members have reported a number of problems with national insurance calculations for 2024-25. Most self-employed individuals are not required to pay Class 2 contributions following changes announced at last year's Budget. 'However, many have received letters from HMRC which have added charges of almost £180 in Class 2, and in some instances double that amount. 'We have reported all examples to HMRC, who have assured us that this is being investigated 'as a matter of urgency'. 'However, it is still not clear what the reason behind the issue is. In the meantime, anyone affected should contact HMRC to ask for a resolution.' An HMRC spokesman said: 'We apologise to those affected and we're working urgently to resolve this issue.'
Yahoo
14 hours ago
- Business
- Yahoo
AT&T to Webcast Fireside Chat with Pascal Desroches at the 2025 Mizuho Technology Conference on June 10
DALLAS, June 3, 2025 /PRNewswire/ -- Tune in for a fireside chat with Pascal Desroches at the 2025 Mizuho Technology Conference scheduled to begin at 8:15 a.m. ET. Webcast available live and for replay. Key Takeaways: AT&T to webcast fireside chat with Pascal Desroches at the 2025 Mizuho Technology Conference. AT&T (NYSE:T) will webcast a fireside chat with Pascal Desroches, chief financial officer, AT&T Inc., at the Annual Mizuho Technology Conference on Tuesday, June 10, 2025. The conversation is scheduled to begin at 8:15 a.m. ET. To hear more, tune into the webcast live or listen to the replay on the AT&T Investor Relations website. Viewers should start the webcast a few minutes before the planned start time in case the conference schedule changes. To automatically receive AT&T financial news by email, please subscribe to email alerts. About AT&T We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at Investors can learn more at © 2025 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property. View original content to download multimedia: SOURCE ATT
Associated Press
14 hours ago
- Business
- Associated Press
AT&T to Webcast Fireside Chat with Pascal Desroches at the 2025 Mizuho Technology Conference on June 10
DALLAS, June 3, 2025 /CNW/ -- Tune in for a fireside chat with Pascal Desroches at the 2025 Mizuho Technology Conference scheduled to begin at 8:15 a.m. ET. Webcast available live and for replay. Key Takeaways: AT&T ( NYSE:T ) will webcast a fireside chat with Pascal Desroches, chief financial officer, AT&T Inc., at the Annual Mizuho Technology Conference on Tuesday, June 10, 2025. The conversation is scheduled to begin at 8:15 a.m. ET. To hear more, tune into the webcast live or listen to the replay on the AT&T Investor Relations website. Viewers should start the webcast a few minutes before the planned start time in case the conference schedule changes. To automatically receive AT&T financial news by email, please subscribe to email alerts. About AT&T We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at Investors can learn more at © 2025 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property. View original content to download multimedia: SOURCE ATT
