Unpaid National Insurance

Ostrich

Thanks Dave & Myrnahaz.
dave - do they always 'investigate' you - also what kind of penalties/interest am I likely to be looking at?

chevalier

When I was in college a long time ago now, because I worked in the summer holidays, each year I would get a form saying that for x year I hadn't paid enough NI. But it was up to me whether I paid the difference or not, and of course I didn't.

At that time you could only go back 7 years to pay any shortfall. Don't know if this has changed now. Is your problem that you didn't pay anything at all? Definitely the best bet is to go and ask.

chev

DAVETHE_CARDBOARDBOX

Ostrich. Wouldnt like to comment. My case was tax and therefore the unpaid NI connected to it. Your case will be a little different. There were able if they wanted to, charge me 100% in terms of a fine, they didnt. Like most cases where there is a maximum fine, it is reserved for real hardened criminals. You get leniancy for full compliance, and as for the investigation, again because mine was tax, they looked into allowances claimed, costs etc, so again in terms of NI the regulations will probably differ. Get out your yellow pages, talk to an accountant. He/she will know, and maybe use one for your future affairs. One thing the nice tax man told me, if an accountant hands in and signs off your tax returns and not yourself (if thats been your scenario), they are very unlikely to be scrutinised.

Ostrich

Thanks again Dave - you have been really helpful. I have been using an accountant for tax but haven't admitted to him re the NI - my head really has been in the sand about it as you can see.
Just one more thing - 'they' i.e. NI did send me some monthly bills earlier this year. I paid one as I had the money but then ignored the others and after a while they stopped. Oh, dear, this is so difficult. I will look them out and see how much I owed - I think it was around £800 so I guess they may actually be 'onto' me anyway and that would fit in with other peeps' thoughts that they can only go back 7 years.
Chevalier: Is your problem that you didn't pay anything at all? Yes.

Seaxwyn

Ostrich, have you also posted on the Tax board here? AS there are accountants who hang out there who are very knowledgeable about these matters.

Ostrich

Seaxwyn -- Yes I did post but haven't continued thread in quite same way as I have on debt-free board. Thanks for suggestion.

myrnahaz

I had NI audits (plus tax and vat audits) annually for a few years until they were sure I had a good enough handle on how it worked (and then only after I enrolled on various HMR&C Business Support Team's courses - which were actually very helpful). The initial audits were chosen at random, they just picked businesses that they hadn't seen before and arranged visits for when they were quiet. It was my husband's new business and he was so busy running it that he wasn't making enough checks on his tax etc. So I stepped in to help just as the taxman decided to drop in for a visit - then the NIC man came, the vatman etc etc. The vat woman (hard as nails) said that the only thing in our favour was that we hadn't tried to hide anything.

Seriously, you really do have to be honest - if they suspect you're on the fiddle then they'll really give you a hard time. If you've already sent in tax returns etc then they will already know how much you earned and will calculate the amount of NICs due and just send you a bill.
I'd bite the bullet and just get it over with if I were you.

DAVETHE_CARDBOARDBOX

Get is sorted Ostrich, pick up the phone. Youve really nothing to fear. PM me if you like, though how helpful I can be is questionable

Ostrich

Ok folks so I picked up the phone. Was quaking and shaking but it wasn't as bad as I feared - Seaxwyn you were right. The rub is that I will probably have little or no pension - I have to call and get a forecast so that is the next hurdle. Actually they were v nice and human.
Thanks everyone for the metaphorical hand-holding. Good to get out of that sand.

Penny2myName

good on you Ostrich, at this rate you will have to change your name to Ostrich No More:D