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Due care taken

14 February 2017
Issue: 4587 / Categories: Tax cases

S Arens (TC5597)

Failure to pay class 2 National Insurance

The taxpayer failed to pay class 2 National Insurance contributions for various periods in the years 1973-74 to 1989/90 and for the years 1994-95 to 2007-08. As a result he did not qualify for a full state pension. He had met all his tax and class 4 National Insurance liabilities in the relevant years. He wished to make further contributions but HMRC refused on the ground the failure was due to the taxpayer not taking due care and diligence. The taxpayer said he relied on his accountant to sort out his tax affairs and had not realised his contributions were insufficient for a full state pension until HMRC told him he would receive only 63%.

The First-tier Tribunal said the taxpayer was a tradesman with little financial or legal expertise. He had appointed an accountant to look after his tax affairs and believed...

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