Hi,
I have been self employed since 2012 and have completed a self assessment tax return every year. I never noticed that every year, HMRC would refund my NIC class 2 contributions.
When I did notice, I rang the National Insurance helpline only for the to tell me they didn't have me registered as self employed!
this is left me with 8 years of no contributions.
I currently have 18 full years of contributions and I am 42 years old
I have given them the date I became self employed in 2012 and they have told me to ring them back when I receive a letter confirming my "new status" as self employed.
Will I be able to back date the 9 years and of no contributions to fill the gaps in my NI record?
Many thanks.
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Replies (23)
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No, six years only.
You may be able to backdate further, see [Richard Thomas and the Commissioners for Her Majesty’s Revenue and Customs, [2016] UKFTT 735 TC05463] but you would be into it for the lang haul, no guarantee of success and may not be worth it.
Buy will they definitely let me backdate the 6 years?
I would be ok with that, I only need 35 years of contributions and the 6 years would give me 24 years and I don’t see a problem contributing another 11 years before I retire.
Unless there’s something I’m missing?
Thanks for your help.
[quote=KevBlue]"Buy will they definitely let me backdate the 6 years? "
You asked a question.
You received an answer.
You don't trust the answer. Why?
Perhaps you should try the forum on the MDTP website. Or You Tube. Rather than an Accountant.
No idea what's going on here. The balance of my post closed the quote and continued:
"Because it came from an internet random called Wanderer in a forum of internet pseudonymmed randoms, OP has no idea who any of us are, those of us who post regularly squabble amongst ourselves and disagree as often as not and because there's a site caveat that says not to rely on what you read here? Just guessing. There may be other reasons."
Will it post this time?
Buy will they definitely let me backdate the 6 years?
I would be ok with that, I only need 35 years of contributions and the 6 years would give me 24 years and I don’t see a problem contributing another 11 years before I retire.
Unless there’s something I’m missing?
Thanks for your help.
As you are under transitional rules for the new State Pension 35 years is unlikely to be relevant.
You should check your State Pension forecast on gov.uk, reading past the headline figure, to see how many years you actually need to reach £175.20.
Buying the Class 2 years is probably sensible but by checking your forecast you will know exactly where you stand going forward.
It sounds like you filled in an SA1 rather than a CWF1 when you registered for self-assessment. This mistake is very common when people attempt diy accountancy.
"I have been self employed since 2012 and have completed a self assessment tax return every year. I never noticed that every year, HMRC would refund my NIC class 2 contributions. "
You never wondered what this extra £140 or in your bank account was ?
Hopefully, you'll take a bit more interest in future. Or, better still, stop trying to do this stuff on your own and get yourself an accountant.
Whilst I privately think that you deserve all you get, you might want to point out to HMRC that you paid your NIC and blame them for sending it back. Don't accept any blame yourself.
Whilst I privately think that you deserve all you get.....
Damn. Did I say that out loud ?
I do have an accountant, this year for the first time, he received a letter from HMRC telling him they had adjusted my rebate and had refunded the class 2 contributions. He then contacted me and I took it from there.
Deserve all I get? What a pleasant individual.
....this year for the first time, he received a letter from HMRC telling him they had adjusted my rebate .....
Well done for having an accountant. Although I'm now wondering why you are asking folk you don't know rather than him.
First time he received a letter ? Judging from my own experience, it seems he's been very unlucky with Royal Mail's service.
So I read this as for the first year you have an accountant
Talk to him
he pointed it out
It is what accountants are supposed to do
He’s an online accountant and doesn’t respond at weekends. Hence me asking on here.
I can only take what he tells me at face value.
Crickey give him chance to respond!!
Or get a proper Accountant (still show some patience though, as you won't be the only client!)
You needed to complete CWF 1
I assume you did not use or need an accountant
Originally you should have paid Directly to DHSS
All change 2016
Then collected with tax BUT only if registered as self employed on form CWF 1
Compete CWF 1 with the true start date
HMRC will amend the return if you are not registered
You have ignored all the amendments saying Class 2 NIC changed
An accountant would have pointed this out every time it happened
And YOU got the same thing your accountant got.
Not just this year but for all years from 2016
Then collected with tax BUT only if registered as self employed on form CWF 1
Come on, Paul, you know this is factually incorrect and is simply reinforcing HMRC's bureaucracy.
Notwithstanding https://www.gov.uk/service-manual/service-standard/point-3-join-up-acros..., there is nothing in legislation that requires a CWF1 to be completed with regards to the SATR, and in fact there is legislation (ignored by HMRC) that invalidates any amendment to a Return (outside of an enquiry) that they make if the taxpayer objects it.
You may say 'factually incorrect' but it absolutely is what happens in real life.
CWF 1 corrects the position in 2 minutes
far less time than arguing with HMRC after the 30 minute wait on phone