Not too late

The taxpayer registered with HMRC as self-employed in 1995. He discovered 17 years later that he had paid no class 2 National Insurance (NI) because the Department for Work and Pensions (previously the Department of Social Security) had not kept him informed.

The Revenue told him he could pay only from the period April 2009 unless he could show the failure to make the NI contributions was due to his ignorance or error and that there was no failure on his part to exercise due care and diligence.

Following the decision in Dr J Schonfield (TC2658) in which the taxpayer’s appeal was allowed because he relied on his accountant to deal with his financial affairs the First-tier Tribunal in this instance noted the taxpayer appointed an adviser recommended to him.

The adviser helped the taxpayer set up as a sole practitioner arranged his VAT...