Share this content

missing class2NI prior to 2016

missing class2NI prior to 2016

Didn't find your answer?

We have a couple of new clients who have never paid class2NI since start of sole trader despite the fact they have submitted tax returns all the way through (priopr to 2016 start date) - we have managed to recify the record and get the situation sorted from 2016 onwards.

Does anyone know if they have had success securing the older missing missing contributions that the class2NI team will say they cannot sorted via normal helpline - if so how did they sort. One of the clients rang up last week to say he had spoken to "hmrc" and they had agreed to bill him at the class2NI rate for those earlier years - not sure  how he managed that or if he was getting confused with the years and he will only receive bills for 2016 onwards (i suspect it is to good to be true hmrc simply updating the record from day one to match what was submitted in sa!!)

 

Replies (6)

Please login or register to join the discussion.

paddle steamer
By DJKL
24th May 2022 09:17

I would be wondering if it is the class II rate they will charge for the earlier missed years or the class III rate and client misheard, just have to wait to see what they send to him.

Thanks (0)
Replying to DJKL:
avatar
By rmillaree
24th May 2022 09:32

They certainly indicated they had got hmrc to agree to bill at the lower rate - as they were well aware the difference between the two rates as they had rang up previously i indicated the clas3 rate was "wrong" albeit due to the time that has passed it may not be easy to sort (but told them to give it a go) . As ever with discussions between our clients and hmrc i will not believe it until i see it ref being sorted. I will try and work outr what exact number they called.

In the meantime for other other client i think i will do letter advising that client had in good faith been reporting that he was sole trader each year so it seems unreasonable that they not allow them to pay the class2 at the approrpiate rate - or exceptiuonally fill in the blanks with the record if they are not able or wanting to bill. HMRC can only say no :)

Thanks (0)
Replying to rmillaree:
avatar
By Hugo Fair
24th May 2022 09:37

I thought there was a limit (of 6 years) as the maximum period for which Class 2 NICs could be retrospectively paid?
Or have I misunderstood the scenario?

Thanks (2)
Replying to Hugo Fair:
avatar
By rmillaree
24th May 2022 09:53

Yep i am guessing hmrc will not play ball past 6 years - i do though see them as being partly responsible for this shambles knowing fine well peeps were submitting tax returns declaring self employed income while they sat silent not issuing the apporpriate bills. Sure they will turn round and say "your cleint didnt do this " or "did that" ultimately though when the record is out of synch proving whose fault it was way back when between client and hmrc is probably nigh on impossible. So is suspect i am on to a loser even trying to find a solution.

Thanks (0)
Replying to rmillaree:
avatar
By Hugo Fair
24th May 2022 10:13

Might be worth a quick look at https://www.mercia-group.com/media/2645/class-2-nic-complexities-1.pdf ... although I've no experience of the Voluntary contribution scenario to which they refer.

Thanks (2)
Replying to Hugo Fair:
avatar
By rmillaree
24th May 2022 13:44

wow hugo thanks for that - just what i was looking for.

If its clear someone was sole trader and they have not paid required mandatory class2. hopefully there is some hope that they would accept a "voluntary" class2NI as specified (not no hope anyway) - even if it should really have been mandatory class2 - certainly enough info for me to go back to class2Ni team and prod em to at least ask the question.

Thanks (0)
Share this content