Treat as paid

The taxpayer worked as a self-employed freelance academic. His accountant wrote to HMRC in 1988 to register the taxpayer as self-employed but did not notify the Department for Health and Social Security (DHSS).

The taxpayer paid the correct tax and class IV National Insurance (NI) but did not pay class 2 contributions. The DHSS and subsequently the Department of Social Security never demanded contributions because it was unaware the taxpayer was self-employed.

The collection of class 2 NI became HMRC’s responsibility in 1999. They did not ask the taxpayer for contributions because his record incorrectly stated he was abroad.

The taxpayer realised in 29009 that he should be paying class 2 contributions and instructed his accountant to write to the taxman to register to pay.

The Revenue told the taxpayer he could pay contributions only for the past six years which he did but...