HMRC Mistakes and issues (UK)

[beanhead]

Just saw this today about Fujitsu and the post office scandal:

https://www.bbc.com/news/business-61020075

This may explain a few things...

The firm supplies large IT systems to the tax authority HMRC, the Department for Work and Pensions and other parts of government, Mr Collins explains.

[Tkydon]

The issue of the bugs in the software provided by Fujitsu, and the convictions of Sub-Post Masters has been going on now for many years.

I don't think this is related to the current delays in responses from the HMRC regarding back payment of pension contributions. I think they are simply overwhelmed by the current demand after announcements that were made a couple of years ago.

Current lead time is over 1 year from sending letter to receiving response...

[Wales4rugbyWC23]

The issue of the bugs in the software provided by Fujitsu, and the convictions of Sub-Post Masters has been going on now for many years.

I don't think this is related to the current delays in responses from the HMRC regarding back payment of pension contributions. I think they are simply overwhelmed by the current demand after announcements that were made a couple of years ago.

Current lead time is over 1 year from sending letter to receiving response...

HMRC are very good at getting cash of you, you cannot complete your online tax return until you have completed it with your bank information and any tax owed is on its way to HMRC. Payment by cash or cheque are forbidden. (Still pay for my voluntary NICs by cheque)

[beanhead]

The issue of the bugs in the software provided by Fujitsu, and the convictions of Sub-Post Masters has been going on now for many years.

I don't think this is related to the current delays in responses from the HMRC regarding back payment of pension contributions. I think they are simply overwhelmed by the current demand after announcements that were made a couple of years ago.

Current lead time is over 1 year from sending letter to receiving response...

Yes, understood that this is unrelated. Just a (failed) attempt at humour.

And agreed, the backlog is just due to the volume. 1 year is insane.

I was actually referring to the fact that they seem to make admin errors fairly frequently, so we all need to watch them like the Shonan hawks.

[Roger Van Zant]

Any recent updates I may be unaware of regarding the whole issue of Class 2 voluntary contributions possibly being phased out?

[RetireJapan]

Any recent updates I may be unaware of regarding the whole issue of Class 2 voluntary contributions possibly being phased out?

The proposal was to eliminate compulsory Class 2 for a certain category of self-employed people in the UK, voluntary contributions were never going to be affected.

[Roger Van Zant]

Any recent updates I may be unaware of regarding the whole issue of Class 2 voluntary contributions possibly being phased out?

The proposal was to eliminate compulsory Class 2 for a certain category of self-employed people in the UK, voluntary contributions were never going to be affected.

Thanks for clearing this up!

[IloveJapan]

Oh…so fhis means that even after April 2024 people can still apply (for the first time) to make class 2 contributions, if they are living outside the UK? Is that right?

[Moneymatters]

Oh…so fhis means that even after April 2024 people can still apply (for the first time) to make class 2 contributions, if they are living outside the UK? Is that right?

https://www.gov.uk/government/news/dead ... april-2025

Until April 5th 2025 it seems.

Just to clarify, you can apply anytime even after 2025. The significance is the extended period you can pay back for. The 2006-2016 period. That’s the deal currently on the table. After April 2025 it drops to the past 6 years.

[IloveJapan]

Thank you for the link, Moneymatters. Greatly appreciated.

Actually what I was trying to confirm was whether:

1) In the period between April 2024 and April 2025, a person living outside the UK could (for the first time) apply to do class 2 contributions?

Or:
2) Whether the right to apply for class 2 contributions expires in April 2024, including for people outside the UK?