“Lost” national insurance contributionsFriday, January 28th, 2011
HMRC has responded with some indignation at recent press reports that £billions in NICs have been lost to employees. For example, one newspaper stated “A HUGE blunder by the taxman could rob millions of people of part of their pension savings.” This followed the release of figures by HMRC of substantial monies not allocated to individual’s National Insurance accounts because they could not be matched with P14s submitted by employers.
HMRC has confirmed that the unallocated payments are held in a suspense account, waiting to be allocated when missing contributions gaps are identified and queried, often when HMRC sends out letters inviting individuals to make voluntary contributions to complete their contribution record.
If employees approach the payroll office to query missing years of contributions, a check should be made that the NI number is correct in the employee’s record, the employee can call the NI helpline on 0845 915 5996 or be directed to HMRC’s guidance on their website.