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Friday rant - HMRC & NI

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Evening,

Few days ago I did submit my new client`s Tax Return. After checking agents portal, I`ve noticed that HMRC calculations were missing Class 2 NI. After talking to HMRC, such a helpful person, bless him, I was told, that my client hasnt been registered for NI.... Registration were done and next week tax calc will be updated. But such a small thing - this person has been selfemployed since 15/16. Good luck to me telling him to expect letter from HMRC with all the backdated NI.

Have a good weekend peeps!

 

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By Matrix
21st Jun 2019 21:05

If you do a search this is quite common. Make sure any bill is backdated so your client doesn’t miss out on NI credits for the last 3 years. £450 is not that much to secure these.

I had one client who hadn’t been registered for 20 years and was only allowed to go back 6 or so. The state pension is now reduced as a result.

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22nd Jun 2019 10:04

Since 15/16 ?

I've been self employed since 1990 and they still dropped me off their list when they stopped direct debits.

I should have left it as it was - I've already got my 35 years in.

Absolute shambles. And it's a disgrace that they wouldn't hold their hands up and admit they got it wrong.

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22nd Jun 2019 11:42

It is a shambles. They have no problem collecting Class 4.

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24th Jun 2019 12:35

As part of my due diligence/advice I always ask new clients to check their state pension. Easy enough with a Gateway account.
I did this a couple of years ago with the wife of a client. She did not work - looking after elderly parents of her own and making sure her next door neighbour had a meal and getting her shopping. She found that she was a couple of years off the full pension so we made her self employed to pay the Class 2 and got the children of the next door neighbour to make a payment for services. That way she got the full amount.
Every so often I send an email round to my clients reminding them to check their own records

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