National Insurance / ESA

tulipchickuk

Can anyone advise me please?
I had 35 years of national insurance payments. Then I became ill with an autoimmune condition (myasthenia gravis). I got PIP at the lower rate and I later found out I could apply for ESA except I wasn’t eligible because the last two years I hadn’t paid NI contributions. However I was self-employed so I was able to pay £3.15 x 52 weeks per year. £327 total. I paid this on June 14th. My NI was applied to the tax year 2020 to 2021 but HMRC are now refusing to apply more than 31 weeks to 2019 to 2020 as they say I was not self-employed between April and September 2019. This is untrue as my tax return clearly shows payments going into my bank account during that period. HMRC tried to make me claim back the national contributions for that year but I refused to, I instead sent in evidence of my self-employment for that period. HMRC self employed dept were supposed to have dealt with this matter by the 12th September but it is still pending. I have made a complaint to their complaints dept but will not hear abt this until 6th October, if then.
I don’t understand why this is happening - meanwhile I am sinking deeper and deeper into debt. I have mobility issues so have to take taxis everywhere ; I have three medical appointments this week alone!
can anyone help at all?
TIA

calcotti

I think there's nothing you can do until HMRC have reached a decision.

Have you looked at entitlement to Universal Credit? If you are part of a couple you both have to claim. You are excluded from claiming if you have capital of more than £16,000.

tulipchickuk

i don’t qualify for uc due to my husband’s earnings 
ok i will just have to wait. 
thanks Calcotti 😊

Dazed_and_C0nfused

tulipchickuk said:

Can anyone advise me please?
I had 35 years of national insurance payments. Then I became ill with an autoimmune condition (myasthenia gravis). I got PIP at the lower rate and I later found out I could apply for ESA except I wasn’t eligible because the last two years I hadn’t paid NI contributions. However I was self-employed so I was able to pay £3.15 x 52 weeks per year. £327 total. I paid this on June 14th. My NI was applied to the tax year 2020 to 2021 but HMRC are now refusing to apply more than 31 weeks to 2019 to 2020 as they say I was not self-employed between April and September 2019. This is untrue as my tax return clearly shows payments going into my bank account during that period. HMRC tried to make me claim back the national contributions for that year but I refused to, I instead sent in evidence of my self-employment for that period. HMRC self employed dept were supposed to have dealt with this matter by the 12th September but it is still pending. I have made a complaint to their complaints dept but will not hear abt this until 6th October, if then.
I don’t understand why this is happening - meanwhile I am sinking deeper and deeper into debt. I have mobility issues so have to take taxis everywhere ; I have three medical appointments this week alone!
can anyone help at all?
TIA

This is untrue as my tax return clearly shows payments going into my bank account during that period

Your tax return cannot show payments going into your bank account.

Have you checked your return to what information you reported on the self employment pages?

When did you start being self employed and how did you register?

tulipchickuk

I was told on the telephone today that the reason HMRC have not applied my voluntary class 2 NI Is because they can only apply from date I registered as self-employed, which they say was September 2019.
This is untrue- and anyway it should not matter as I have been working as self-employed for several years. I  previously registered with HMRC but cannot remember when! 

unfortunately when I came to access my tax account I got locked out and I could not get back in using the methods offered as I couldn’t find my drivers license and I didn’t pass the credit reference questions. That was why I got another UTR in Sept 2019
I registered online both times. I’ve been self employed since 2010 but don’t earn much - 2019 was the first year I earned over £1000
I have also been employed during that time period - but not 2018-date due to studying (MA) and illness 

thanks 

tulipchickuk

forgot to mention my self-assessment was filed by my accountant.

sheramber

tulipchickuk said:

I was told on the telephone today that the reason HMRC have not applied my voluntary class 2 NI Is because they can only apply from date I registered as self-employed, which they say was September 2019.
This is untrue- and anyway it should not matter as I have been working as self-employed for several years. I  previously registered with HMRC but cannot remember when! 

unfortunately when I came to access my tax account I got locked out and I could not get back in using the methods offered as I couldn’t find my drivers license and I didn’t pass the credit reference questions. That was why I got another UTR in Sept 2019
I registered online both times. I’ve been self employed since 2010 but don’t earn much - 2019 was the first year I earned over £1000
I have also been employed during that time period - but not 2018-date due to studying (MA) and illness 

thanks 

Do you mean you did not make returns as your income was covered by the £1000 allowance?

Presumably September 2019 is when your current self assessment record was opened.

tulipchickuk

yes
I cannot see any date on my account at all

sheramber

If you were not sending on returns then  HMRC would not have any record for your self employment .

What starting date did your accountant put on the tax return?

xxxxxxxx

Just so you are aware,  
when you finally sort out the NI with HMRC you will need to make a new claim to ESA 

ESA can only be backdated a max of 3 months.  

You are in a catch 22 of sorts.  You would want to backdate ESA to June 14th the date you paid your NI but you cannot now do this because of the 3 month limit.  

But there's more... 
There is a 42 day penalty period (6 weeks) from the date the NI is paid late.  so you cannot be entitled to ESA from 
June 14th 2022 - 25th July 2022

The earliest you can claim and be entitled to ESA from is 26th July and the 3 month backdating means you must make that ESA claim on or before 25th October 2022   

But you "cannot" make that ESA claim until HMRC not only agrees to your NI payment for 2019/20 but they also agree to it as having been paid in full on 14th June 2022.   

My advice - is to make the ESA claim before 25th October, backdated to 26th July, whether or not HMRC have sorted this out for you...   and if and when HMRC finally agree to the 14 Jun 2022 paid in full, then contact ESA and ask for your claim made ?20th? October to be looked at again.  ESA are then bound by law (ADM A3089) to revise the ESA claim if HMRC have allowed the NI payment from 14th June.

calcotti

xxxxxxxx said:

But you "cannot" make that ESA claim until HMRC not only agrees to your NI payment for 2019/20 but they also agree to it as having been paid in full on 14th June 2022.   

My advice - is to make the ESA claim before 25th October, backdated to 26th July, whether or not HMRC have sorted this out for you...   and if and when HMRC finally agree to the 14 Jun 2022 paid in full, then contact ESA and ask for your claim made ?20th? October to be looked at again.  ESA are then bound by law (ADM A3089) to revise the ESA claim if HMRC have allowed the NI payment from 14th June.

It’s sensible to apply for ESA anyway because even if DWP say that it cannot be paid due to inadequate NI record OP will still be referred for a WCA and will get NI credits which will continue if OP is found to have LCW or LCWRA. In any case I infer from what has been posted that OP has made the ESA claim.