From April 2014, HMRC may collect outstanding Class 2 National Insurance Contributions (NICs) by adjusting the tax codes of customers in PAYE employment or receiving a UK-based private pension.

The tax authority is now sending payment requests to customers showing any Class 2 NICs they owe.

Customers will be asked to pay or to contact HMRC if the payment request is wrong on account of instances, for example, in which a customer has stopped trading.

The payment requests also say that not paying may mean HMRC will collect the debt through their PAYE code from April 2014 or pass it to a private debt collection agency for recovery.

Customers who do not pay or contact HMRC after getting a payment request may get a PAYE Coding Notice between January and March 2014, indicating that the Class 2 NICs debt will be collected from April 2014.

Clients who are no longer self-employed may not owe HMRC Class 2 National Insurance contributions. Agents should check their clients' payment requests and inform HMRC if these are wrong.

HMRC can be informed of of whether a client has sold or closed a business through an online form which covers self assessment and national insurance.

Further details are available from HMRC, HERE