Revenue consults on penalties for late Class 2 NIC registration

If you are newly self-employed, then the Inland Revenue wants to hear from you as to how they can streamline their services for more efficient collection of your NICs.

In November last year, the Chancellor asked Lord Grabiner QC to undertake an investigation of the hidden economy. Subsequently Lord Grabiner reported that the burden of tax administration means that the newly self-employed often drift into the hidden economy as they cannot keep their affairs in order.

UKTECH recently put out a call to action in support of The Times campaign to cut red tape.

This time, perhaps even the Revenue may listen - although they seem to be opting for the heavy-handed approach: The theory is new business will keep up with the admin if they register for Class 2 NICs early, but not all new businesses are aware of the need to register. To incentivise them, the Revenue will enforce a fixed penalty on those who don't.

Unfortunately there is no incentive to take part in the Revenue consultation. More's the pity - it could certainly have provided a useful second income stream to a new contractor.

Details of the Revenue's request for consultation can be found at starting a business

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The Editor