Before I came here I was confused about this subject. Having listened to your lecture I am still confused. But on a higher level. - Enrico Fermi.
Anyone following this blog will know that HMRC went through the wringer in 2010. Unfortunately, 2011 has not gotten off to an an audacious start either. The parliamentary question that kicked it off went like this:
Ian Liddell-Grainger (Bridgwater and West Somerset, Conservative):
To ask the Chancellor of the Exchequer how many national insurance (NI) contributions deducted from pay and recorded on form P14 were not credited to NI accounts in each year since 5 April 2004; and what the monetary value is of the contributions yet to be credited.
David Gauke (Exchequer Secretary, HM Treasury; South West Hertfordshire, Conservative):
The number of unmatched P14s and the associated monetary values of the contributions received for the tax years requested are as follows:
Tax year P14s not matched Monetary value of contributions (£)
2004-05: 1,839,143 263,101,931.24
2005-06: 2,016,761 289,212,918.76
2006-07: 1,974,081 278,618,228.99
2007-08: 1,947,065 258,603,899.93
2008-09: 1,542,773 194,623,653.05
2009-10: (1)- (1)-
(1) Figures not yet available.
So that's OK then!! In fairness HMRC does make a good point that the fault (at least as they perceive it) is incomplete information from the employer. Worryingly, one comment we have seen says that the above is an improvement over recent years. So £1.3 billion waiting to be allocated? While it may be an issue stemming from inadequate information, that's no defence at all and they should have systems in place to deal with this.
We'll keep you posted.