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State Retirement Pension - WASPI - Backdating voluntary Class 2 Self-employment NIC beyond 6 years

Andyp5 Citizens Advice Bridport & District
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Citizens Advice Bridport & District

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Total Posts: 661

Joined: 9 January 2017

Would be grateful for any advice on the following including any potential pitfalls for client?

Client’s retirement age is 2024, although she had been registered for tax since as a self-employed person since the 1990’s, she did not register her self employment for class 2 NIC’s until last year.

HRMC have agreed to her paying backdated class 2 voluntary self-employment NIC’s for the past 6 years (£3 a week for 2019/20 rates).

But not beyond that period i.e. she would have to pay class 3 voluntary to 2005 (£15 a week 2019/20 rates).

HRMC have accepted her her failure to register before last year was from ‘ignorance and error’, but that her ‘error’ was ‘due to a failure to exercise ‘due care and diligence’.

Citing the following

1. she did not register with the DSS when she became self-employed in the early 1990’s.
2. it remained her responsibility to notify the relevant agencies that she was self-employed and needed to pay class NIC’s.
3. When she registered for income Tax the Inland Revenue would have sent returns and notes which explained that self-employed people are generally liable for flat rate Class 2 contributions, details on contact NIC office for further info on registering for Class 2 NIC’s. But she did not act on these.
4. Finally, she could have made enquiries with HMRC or it’s predecessors about paying Class 2 NIC’s before 2020.