Problems with the computer system at the Inland Revenue meant that, in 1998, it failed to collect NI contributions from 42,000 self employed people.
A gap in contribution levels can affect the state pension – the gap in this instance could total as much as £3.5 million – and the people involved are now expected to make up the shortfall.
Computer problems have plagued the Revenue’s handling of pensions, and these problems have been highlighted in the past. The problems with billing for NI contributions occurred between 12 July and 10 October 1998, but the Revenue claimed that the systems have been working properly since April 2000.
A spokeswoman for the Revenue said that it regrets any inconvenience to contributors who are affected and that no late payment premium will be charged, in view of the fact that the Inland Revenue is responsible for the delay in notifying contributors.
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