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Remedy for Class 2 ramifications?

Remedy for Class 2 ramifications?

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We have a client who has been denied E.S.A. because he doesn't have enough "stamps" on (i.e. Class 2 contributions). Needless to say . . . . . our Tax Return "instructed" them to take the Class 2 but they failed to do so. Does anybody have any easy remedies for this situation? We have asked the client to, initially, contact ESA and to tell them that it's all due to HMRC's actions and not to his . . . . . is this likely to help? We would like an easy solution (as it's December and it's getting hectic!).

Chris.

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By sally1964
04th Dec 2017 12:07

It sometimes happens and HM send out a tax cal telling you they have amended the return. You then need to ring up NI people and get them to update records.

Often turns out people are registered for SA but never registered as Self employed.

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By lh3f9764bg1g
04th Dec 2017 13:38

Yes but . . . . . wouldn't you think that completion of a Self-Employment schedule might be a pointer? Also, it seems that some who had a pause of a year or two in their self-employment (e.g. due to illness or a return to employment or some-such) have been incorrectly treated. As I say . . . . . the completion of a Self-Employment schedule should be enough for them . . . . then add on the fact that we have calculated the liabilities for them (and advised them as to same) and . . . . . oh, I despair!

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Replying to lh3f9764bg1g:
RLI
By lionofludesch
04th Dec 2017 17:21

You might think that but we all had clients - some longstanding self employed - who mysteriously disappeared off the Class 2 register when monthly collection was abolished.

You'd've though liability to Class 4 might be a pointer. Apparently not.

Just run with it. They'll disappear soon.

Stamps, eh ? Disappeared in 1984 ........

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