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Class 2 NI

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Hi - I have a client who does some part time work as a musician. His self employed profits are low - less than £2k per year. I have been advised by HMRC that he is liable for Class 2 for 13/14 and 14/15 because he/I did not apply for a small earnings exemption and this cannot now be corrected. Is this correct and have other readers appealed against this decision.

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By lionofludesch
09th Feb 2017 11:08

That sounds very hard line.

I've definitely backdated SEE in the past.

Moreover, you can apply to reclaim any Class 2 paid if it turns out that the contributor didn't earn as much as he thought he might. At one time, you couldn't do this but the CA would still let you submit a late SEE claim.

When I say "hard line" by the way, I actually mean "wrong". Ask them for their authority for their somewhat eccentric opinion in the Regulations.

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By David Heaton
09th Feb 2017 17:52

It has long been policy for officials to waive proceedings for arrears where a person would have been entitled to SEE if he had claimed it. This policy was set out by a minister in Parliament: Hansard 24 Feb 1978, Vol 944 No 67 Col 836. I don't recall any announcement withdrawing this policy. It should not be open to somebody in Newcastle to act counter to ministerial policy.

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