Unpaid Class 2 NIC

mike.keighley

I have been a sole trader since 2000. I have submitted yearly tax returns and paid both tax due and Class 4 NIC
I can't believe how stupid I have been because as of today I was totally unaware of Class 2 payments. I therefore have 14/15 years of unpaid contributions. As I am only two years away from pensionable age what do I do, what penalties should I expect, any advice would be gratefully appreciated.

PlutoinCapricorn

How did you get away with it for so long? Surely HMRC would have sent bills.

PlutoinCapricorn

I believe that you can go back 6 years when paying a NI shortfall via voluntary, Class 3 contributions.

If you have been completing tax returns and paying Class 4, you might be able to avoid penalties by saying that HMRC never billed you.

purdyoaten

PlutoinCapricorn wrote: »

I believe that you can go back 6 years when paying a NI shortfall via voluntary, Class 3 contributions.

If you have been completing tax returns and paying Class 4, you might be able to avoid penalties by saying that HMRC never billed you.

Indeed - or you can inform HMRC and pay the Class 2 arrears for the last six years- the penalty takes the form of payment of all years at the current rate.

Obviously this problem will no longer recur with Class 2 now being paid under self-assessment.

mike.keighley

PlutoinCapricorn wrote: »

How did you get away with it for so long? Surely HMRC would have sent bills.

No they have not contacted me at all on this issue

PlutoinCapricorn

Could you have started a Direct Debit for this purpose which has run and run? Did you ever claim exemption on the grounds of low earnings?