The issue really is that clients had always paid Class 2 NICs through the old system, its just that HMRC system has not collected Class 2 NIC through the SA system
Thanks Paul, there could be quite a number of self employed folks in the same boat then, potentially millions, (if we are to believe their figures for unsubmitted returns that they were quoting in mid January) and given that HMRC had given tax payers and agents an extra month to end of February 2022 to bring their affairs up to date, and potentially millions who will not have paid class 2 NICs for the year.
It seems that there is a rather big loss to the Exchequer, and to taxpayers NIC contribution records
Thanks for this. It is a little confusing through when you go through the HMRC wizard as below. Any comments? The client was present in UK for 17 days during 2020 year. Thanks again
Was the tax payer alive for the entire tax year? Yes
Present in the UK more than or equal to 183 days in the current tax year? No
Were you resident in the UK for at least one of previous three tax years and present in UK less than 16 days in the current tax year? No
Not resident throughout the whole of the previous three tax years and present in UK less than 46 days in the tax year? No
Leave UK to work full-time overseas, present in UK less than 91 days and less than 31 days spent working in UK? Yes
You are treated as NOT resident for the 2020-21 tax year.
My answers
https://www.bbc.co.uk/news/business-60216073
The issue really is that clients had always paid Class 2 NICs through the old system, its just that HMRC system has not collected Class 2 NIC through the SA system
Thanks Paul, there could be quite a number of self employed folks in the same boat then, potentially millions, (if we are to believe their figures for unsubmitted returns that they were quoting in mid January) and given that HMRC had given tax payers and agents an extra month to end of February 2022 to bring their affairs up to date, and potentially millions who will not have paid class 2 NICs for the year.
It seems that there is a rather big loss to the Exchequer, and to taxpayers NIC contribution records
thanks all
Thanks for this. It is a little confusing through when you go through the HMRC wizard as below. Any comments? The client was present in UK for 17 days during 2020 year. Thanks again
Was the tax payer alive for the entire tax year? Yes
Present in the UK more than or equal to 183 days in the current tax year? No
Were you resident in the UK for at least one of previous three tax years and present in UK less than 16 days in the current tax year? No
Not resident throughout the whole of the previous three tax years and present in UK less than 46 days in the tax year? No
Leave UK to work full-time overseas, present in UK less than 91 days and less than 31 days spent working in UK? Yes
You are treated as NOT resident for the 2020-21 tax year.
They are not eligible for an Australian passport as not there long enough, so assume that they are (still) UK national
They are not eligible for an Australian passport as not there long enough, so assume that they are (still) UK national
has anyone received such a call from HMRC as a follow up to a letter that they would have sent 10 days previous?
sorry should be B1 2AX, thanks