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NI contributions
Im selfemployed recently got a mortgage and got my accountant to produce accounts to get a 95% mortgage to buy a flat
the inland revenue sent me a letter wanting last years NI contributions - ive never declared anything they want �280. how did they find out? i was runnign a business would the mortage or accountant let the inland revenue know?
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For more on marking an answer as the "Best Answer", please visit our FAQ.I don't understand how you can be running a business, have an accountant, yet not be declaring anything. Have you produced the accounts purely for the purposes of obtaining the mortgage, or are they also for submission to the Inland Revenue?
If your accountant is reputable, he should advise you at the outset that you must notify the Inland Revenue immediately of your self-employed status and begin paying Class 2 National Insurance Contributions. Most accountants will do this on your behalf, and you shortly afterwards would receive instructions about paying the Contributions.
If you have recently engaged the accountant after a period of self-employment, he/she may well have notified the Inland Revenue of your status, as he/she is professionally and legally obliged to do.
The mortgage lender would not notify the Inland Revenue.
I would advise you to speak to your accountant about this.
well are you actually self employed? I am not sure what you mean about your daughter financing everything - whose business is it? If you have been receiving untaxed income, then you must be assessed for tax and National Insurance Contributions, and now that the Inland Revenue know about you they will want full details of income and expenditure. If the income is low, there may be no tax due but Class 2 National Insurance Contributions are due unless you claim IN ADVANCE that your income will be less than �4345 a year.
I would once again suggest you speak to your accountant about this, if he has prepared accounts he must know what your status is, and can help you to sort this out.