Gadsden v Revenue and Customs (National Insurance contributions - Class 2 - late payment - ignorance or error - due care and diligence - reliance on professional advisers - deficiency notices - State Pension entitlement) [2026] UKFTT 720 (TC) (14 May 2026)

Gadsden v Revenue and Customs (National Insurance contributions - Class 2 - late payment - ignorance or error - due care and diligence - reliance on professional advisers - deficiency notices - State Pension entitlement) [2026] UKFTT 720 (TC) (14 May 2026)

The appellant's ignorance or error in failing to pay Class 2 National Insurance contributions was not due to any failure to exercise due care and diligence, as he took reasonable steps by appointing professional advisers, remained engaged with his affairs, paid substantial Class 4 contributions, and had no clear reason to suspect a separate obligation existed. Deficiency notices, if received, were insufficiently clear and would have been passed to his accountant, which itself constitutes due care and diligence.

Citation
[2026] UKFTT 720 (TC)
Parties
Appellant: Mark Gadsden; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
14 May 2026
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal allowed
Legal Topics
National Insurance Contributions, Class 2 Contributions, Late Payment, Due Care and Diligence, Reliance on Professional Advisers, State Pension Entitlement
Tax Law Social Security Law National Insurance Contributions Class 2 Contributions Late Payment Due Care and Diligence Reliance on Professional Advisers State Pension Entitlement

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Parties

Mark Gadsden

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether the appellant's ignorance or error in failing to pay Class 2 National Insurance contributions was not due to any failure to exercise due care and diligence under Regulation 6 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001

Ratio Decidendi

The appellant's ignorance or error in failing to pay Class 2 National Insurance contributions was not due to any failure to exercise due care and diligence, as he took reasonable steps by appointing professional advisers, remained engaged with his affairs, paid substantial Class 4 contributions, and had no clear reason to suspect a separate obligation existed. Deficiency notices, if received, were insufficiently clear and would have been passed to his accountant, which itself constitutes due care and diligence.

Court Disposition

Appeal allowed

Orders

  • HMRC to treat the relevant Class 2 National Insurance contributions as paid for contributory benefit purposes