HMRC Request for backdated NI

xfive71

Hello all, hopefully someone could me a little advice. My husband did not work in tax year 08/09 and did not claim any JSA for the period. Nor did we paid his NI contribution for the period. He is now self-employed and making regular NI contributions

We received a bill from HMRC asking for NI contributions for this period. It is quite a fair chunk which we could not spare for the moment. My questions are :

Will we get into trouble if we did not pay this?
Would HMRC accept payment in instalments?

I understand that we would prob need 30 years worth of NI contribution to qualify for state pension, of which he has 12, and he is still 25 years away from retirement. Thank you

System

Was the 08/09 tax year before he registered as self-employed?
If so then it's likely that they are offering him the opportunity to make that year count towards the 30 years contributions he needs to get a state pension. The letter would actually say it is not a demand and would offer him several years to make the voluntary contributions.

If he was registered as self-employed then they may be asking him for outstanding class 2 NI contributions and he would need to contact them and explain that he never actually had any self-employed income in that year.

dori2o

Is it a bill, or is it a statement advising that there may be a shortfall in contributions?

If it is a bill it would normally only be generated if your husband was self employed in that year but had not paid his class 2 contributions.

If it is a statement advising there may be a shortfall, then you don't have to da anything, but it may affect the amount of state pension/benefits you are entitled to.

xfive71

Thank you very much.
It did state it was not a bill and looks like they are giving him an option. I will contact the tax office and ask about this. We would like to pay the shortfall but not as a lump sum (we can't afford to at the moment!).

Once again, thank you for the very quick and comprehensive answerss :T