Diligent taxpayer

Failure to pay class 2 National Insurance contributions

The taxpayer was a self-employed musician. He applied to HMRC to pay backdated class 2 National Insurance contributions for the period 1967-68 to 2007-08 because he had paid only class 4 contributions. He accepted that his failure to pay class 2 was the result of his error and ignorance but this was not because he had failed to exercise due care and diligence. He said the National Insurance agencies had also failed to contact him about the class 2 liability even though he was making class 4 contributions.

HMRC refused to allow backdated contributions. The taxpayer appealed.

The First-tier Tribunal found the taxpayer was not familiar with the class 2 National Insurance system. In 1976 he had appointed an accountant to ensure that his affairs were in order. He had asked about class 4 contributions and had accepted the response...