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Where Taxpayers and Advisers Meet

Class 2 contributions

ian2605
Posts:1
Joined:Wed Aug 06, 2008 3:21 pm

Postby ian2605 » Tue Feb 22, 2005 5:25 am

I am a self employed worker but I do work for a firm I have always paid class 4 NIC but I have recieved a bill for class 2.I genuinely did not know I had to pay class 2 also and now they are threatening court action.Do you think the Inland Revenue would accept monthly Direct Debit payments for future bills and a little extra for arrears or will I have to pay all the arrears first as the amount is quite a large sum.

JSK TAXATION
Posts:200
Joined:Wed Aug 06, 2008 2:18 pm

Postby JSK TAXATION » Tue Feb 22, 2005 6:17 am

Taking your query at face value and therefore assuming you are correctly self employed the way to deal with this matter is as follows:

Contact National Insurance Contributions Office (NICO) who should be willing to restrict the arrears position to the previous 6 years should your self employment have been longer. This request will have to be in writing.

Once this has been accepted, write to them again explaining you will not be able to pay for the arrears in one payment and suggest a time frame for settlement in full.

Provided you take these two important steps, there should be no reason why NICO will not accept your request.

As a demonstration of good faith and intent, It is important for you to continue paying existing Class 2 liabilities as they fall due.

Good luck!
John S King
Chartered Tax Adviser
e: help@taxation-advice.com
w: http://www.taxation-advice.com
01732 897850


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