Voluntary backdated NI payment class 2 disallowed prior to 11/04/2015 - why?

donglefan

I asked the Revenue if I could pay back to 2013 at class 2 because I had self employment and low income back to 2013, but they have only permitted me to pay class 2 back to 11/04/2015.
I phoned to ask what happened on that date, as nothing changed on my side.  I didn't understand the reply - something about the way they collected something changed on that date, and that because I did not have a 'small earnings exemption' in place for those years, I could not now pay for them at class 2, only at class 3.  I said that in fact I had small earnings for the relevant years and this was not disputed, the problem was that I did not have the 'exemption' in place at the time.

May I check with the seasoned experts on MSE that this advice from HMRC accords with the law about being able to backdate Class 2 payments to 2006?   Is there any form of appeal it would be worth making in order to be able to pay class 2's for these years now?

molerat

https://library.croneri.co.uk/cch_uk/btr/1015-775

It seems what they are saying is that from 2015-16 class 2 became part of SA and the requirement to pay was worked out from that submission.  Prior to that you had to apply for a small earnings exception, nothing was due but you had to have a certificate confirming that - a bit like paying your £0 car tax each year, you still have to apply.  As you did not do that you are effectively late in paying (£0) - because you failed to apply to not pay it - so can no longer pay as it is outside the time frame for late payment so the only option is class 3.

donglefan

Thank you molerat.  
I will attach the letter from HMRC below.  I think I should be able to pay the 15/16 year at class 2 in this case?

squirrelpie

You [presumably] don't have a small earning exception for the first few days of 2015-2016 and I expect HMRC are relying on that.

donglefan

squirrelpie said:

You [presumably] don't have a small earning exception for the first few days of 2015-2016 and I expect HMRC are relying on that.

Thank you.  Is that relevant if I did not earn on those particular days?

german_keeper

donglefan said:

squirrelpie said:

You [presumably] don't have a small earning exception for the first few days of 2015-2016 and I expect HMRC are relying on that.

Thank you.  Is that relevant if I did not earn on those particular days?

The letter you have copied states that you don't have SEE for tax year 15/16. If that's the case I assume your earnings in the period from 6/4/15 to 11/4/15 are irrelevant.  

donglefan

german_keeper said:

donglefan said:

squirrelpie said:

You [presumably] don't have a small earning exception for the first few days of 2015-2016 and I expect HMRC are relying on that.

Thank you.  Is that relevant if I did not earn on those particular days?

The letter you have copied states that you don't have SEE for tax year 15/16. If that's the case I assume your earnings in the period from 6/4/15 to 11/4/15 are irrelevant.  

as i understand it (which is isn't fully), after the change in the rules, it wasn't necessary to have this 'exception' arrangement.

german_keeper

donglefan said:

german_keeper said:

donglefan said:

squirrelpie said:

You [presumably] don't have a small earning exception for the first few days of 2015-2016 and I expect HMRC are relying on that.

Thank you.  Is that relevant if I did not earn on those particular days?

The letter you have copied states that you don't have SEE for tax year 15/16. If that's the case I assume your earnings in the period from 6/4/15 to 11/4/15 are irrelevant.  

as i understand it (which is isn't fully), after the change in the rules, it wasn't necessary to have this 'exception' arrangement.

I think I agree now. So if the rules changed on 11/4/15, 2014/2015 should be the last tax year affected by the SEE rules. If so the reference to 2015/2016 in the letter you received is incorrect.

donglefan

I've received a letter from HMRC about this, but it doesn't answer my letter.   For one thing it thanks me for my letter of 12/04/24, but my letter was dated January 24.   Then it completely ignores the rule change and simply states "As previously advised class 2 contributions  are subject to strict time limits and can only go back 6 years."
I know that is wrong because I paid some back to 2006 at class 2 in 2023.
Where do I go from here?  Try phoning again?  How can I raise a complaint and is there time to do that?