Dr J Schonfield v HMRC

In Dr J Schonfield v HMRC (TC02658 – 25 April) an individual (S) began self-employment in 1986. He paid income tax and class 4 NICs but failed to pay any class 2 NICs until 2009/10. Subsequently he applied to pay backdated contributions to enable him to qualify for a full state pension. HMRC accepted his application for 2003/04 onwards but rejected his application for 1986/87 to 2002/03 on the grounds that his failure to pay contributions at the appropriate time was attributable to a failure to exercise ‘due care and diligence’. S appealed contending that he had been misled by the accountant who had dealt with his tax affairs and who had failed to inform the DHSS that he was self-employed. The FTT accepted this contention and allowed the appeal. Judge Radford found that S had ‘exercised due care and diligence by appointing an accountant...