Fine balance

National Insurance contributions paid in the 1980s

The taxpayer claimed that he had paid class 1 National Insurance contributions in the years 1986-87 to 1988-89. HMRC said the insolvency section of its predecessor (Inland Revenue) had investigated the taxpayer’s company concluded he had been a negligent director and that no contributions had been paid for those years. His National Insurance record was therefore updated to show no contributions for the period.

HMRC said the insolvency section would have been in touch with the taxpayer during its investigation. Further a deficiency notice about the shortfall would have been sent to him.

The taxpayer said he had been fully aware of his responsibilities as a director. The company had been wound up in 1994. It had had no outstanding debts so was not insolvent and there was no basis to conclude he had been negligent. He had paid £800...