Why is HMRC backdating NICs liability?
A At the time of Pre Budget Report 2004 the Paymaster General, Dawn Primarolo, made a statement to the House of Commons. The statement outlined how, despite the best efforts of successive Governments, it was continually being presented with ever more complex and contrived arrangements designed to avoid income tax and National Insurance on the rewards from employment. The Paymaster General made it clear that the objective of the Government was now to close down this activity permanently, and where necessary to backdate tax and NICs liability that was avoided to the date of the announcement.
Related Questions
- What if the employee agrees to pay the secondary NICs liability, but in the end the employer chooses to pay it instead – will the tax relief still be available?
- What happens if my liability to the Inland Revenue for PAYE tax, NICs and student loan deductions is less than the tax credits I will have to pay?
- Why is HMRC backdating NICs liability?
