Before the CWF1?

Before the CWF1?

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Hello, hope you can help. We have a client who has just starting receiving state pension but at a very low amount. When he asked me about it, I queried whether his Class 2 NIC was up to date and he said he couldn't recall ever paying it. We have only acted for five years or so and his profits are low but don't see bank statements so wasn't aware of the NIC position.

I mentioned whether his previous accountant had perhaps claimed Small Earmnings Exception from the outset but he just has no idea. I suggested he write to the NI office to establish why they hadn't been collecting them and they say that they have no record of him being self employed! Now, with the CWF1, this goes to HMRC and they also set taxpayers up for Class 2 so, as long as that has been done, and you haven't claimed SEE, i would say it is their responsibility to issue demands for Class 2. But, they have told him that, as he has been self employed prior to 1999, when the Contributions Agency and Inland Revenue merged, he would have had to inform BOTH parties separately of his self employment.

I'm not sure I agree with this - now, it is a long time ago, admittedly, but i can only ever recall having one form to complete for registering self employment - think it was a 41G? - And it went to the Inland Revenue who passed on the information to the NIC folks. Can someone please put me out of my misery and let me know whether this is right or wrong? And also, anyone with an amazing memory remember how the form asked for details regarding NI? (Or even better, does anyone have a copy???)

Replies will be much appreciated :-)

Replies (3)

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By jonkaye
20th Sep 2012 11:02

CF11

I believe that, in addition to sending form 41G to the Inland Revenue, I used to send form CF11 to the Contributions Agency (Class 2 Group) at Longbenton.

I certainly came across many situations (and, like you, occasionally still do) where a client was registered for Schedule D tax, but not for class 2 NIC.

I hope that helps.

 

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By adam.arca
20th Sep 2012 12:23

*

I stand to be corrected but my memory is that the CWF1 was in place prior to the merger of the CA into the Revenue, maybe mid 90s? I think the fact the form is entitled as a common working form also suggests that.

Prior to whenever that was, it was certainly the case that separate notifications had to be made, though I would never have been able to remember what the forms were!

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By northernmonkey
20th Sep 2012 14:21

Thanks peeps - I was hoping

Thanks peeps - I was hoping that he may be able to go back and pay some voluntary Class 2 if there was any chance CA/IR were at fault!

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