Kirin Kalia v The Commissioners for HMRC
[2023] UKFTT 875 (TC)
Navin Joshi v The Commissioners for HMRC
23 October 2023
[2023] UKFTT 903 (TC)
First-tier Tribunal
Mr. Joshi needed 10 years of National Insurance contributions for his UK pension. He was short, so he paid some extra late. The government decided his pension would start when they received his payment (May 15th), not when he reached retirement age. The court agreed with the government.
Key Facts
- •Mr. Joshi appealed a decision regarding the commencement date of his UK State Pension entitlement.
- •He had a shortfall in qualifying National Insurance Contribution (NIC) years.
- •He paid a late voluntary Class 2 NIC contribution.
- •The dispute centered on the interpretation of Regulation 4 and Regulation 6 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001.
- •HMRC initially set the entitlement date as 19 July 2017 but later conceded to 15 May 2017.
- •Mr. Joshi argued for a commencement date of 27 January 2017 (his pensionable age).
Legal Principles
Treatment of late-paid contributions for contributory benefits.
Regulation 4, Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (SI 2001/769)
Discretion to treat contributions paid late due to ignorance or error as paid on an earlier date.
Regulation 6(1), Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (SI 2001/769)
Jurisdiction of the Tribunal to hear appeals concerning HMRC's discretionary decisions.
Social Security Contributions (Transfer of Functions, etc.) Act 1999; Social Security (Contributions) Regulations 2001; Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009; Taxes Management Act 1970
Judicial review principles (illegality, irrationality, procedural impropriety, fettering of discretion, proportionality) applicable when reviewing the exercise of discretion.
Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223
Outcomes
Appeal dismissed.
HMRC's exercise of discretion under Regulation 6(1) to set the entitlement date as 15 May 2017 was justified, and the Tribunal found no basis to backdate entitlement to 27 January 2017. Regulation 4(7) dictates the commencement date is linked to the actual payment date of the contribution.