‘Not fit for purpose’: tax glitch putting pensions of self-employed at risk

Accountant says HMRC did nothing to fix national insurance issue in self-assessment system

Hundreds of thousands of self-employed could be missing out on future state pensions and benefits because of a glitch in the self-assessment system that makes it “not fit for purpose”, according to a top accountancy body.

When an individual files their self-assessment tax return online, a message can appear from HM Revenue & Customs that says they do not need to pay class 2 national insurance contributions. This message appears if the individual has not properly registered as self-employed. If they then fail to make the Nic payments, they lose their full entitlement to a state pension.

Continue reading...

from Children | The Guardian https://ift.tt/2NXEFXH