Prochazka
| Jurisdiction | UK Non-devolved |
| Judgment Date | 04 January 2012 |
| Neutral Citation | [2012] UKFTT 4 (TC) |
| Date | 04 January 2012 |
| Court | First Tier Tribunal (Tax Chamber) |
[2012] UKFTT 4 (TC)
Miss JC Gort (judge) (Chairman), Jane Shillaker (Member)
Mr Richard Prochazka appeared on behalf of the Appellant
Mrs Lisa Storey, an officer of HMRC, appeared on behalf of the Respondents
National Insurance - married woman's election to pay at reduced rates - appellant's understanding of English not good - whether she did make election - CF9 document destroyed by HMRC - whether HMRC's record correct - appeal dismissed
1.This is an appeal against a decision of 10 August 2010 made under Social Security Contributions (Transfer of Functions, etc) Act 1999 section 8s. 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 that from 8 March 1971 to 5 April 1975 Mrs Prochazka was not liable to pay National Insurance Contributions and that from 6 April 1975 to 5 April 1978 she was liable to pay contributions at the married woman's reduced rate. This decision was based on an election said to have been made by Mrs Prochazka in 1971 to opt out of paying National Insurance ("NI") contributions as a married woman. The effect of the decision is that Mrs Prochazka now has a reduced pension entitlement of 75% of the full rate.
2.The principle grounds of appeal are that (i) Mrs Prochazka, whilst accepting that she did not pay NI contributions in the relevant period, never saw or signed form CF9 (the form which was both an application for a National Insurance contribution card and an application to elect whether or not to pay contributions at the full rate); (ii) Mrs Prochazka did not see or have explained to her the leaflet NI 1, the National Insurance Guide for Married Women issued in October 1970; (iii) she was thereby denied the choice of whether or not to opt out of paying contributions, (iv) in the circumstances she should be given the opportunity of paying the amount she would have paid in contributions and of claiming the full pension.
3.A bundle of documents containing inter alia all the correspondence between the parties was produced by HMRC. Mr Prochazka presented the case on behalf of Mrs Prochazka (his wife) and gave evidence. Mr Alan Greenshields, an officer of HMRC, gave evidence on behalf of the Respondents. After the close of proceedings Mr Prochazka addressed a letter to the Judge in which he made further submissions. This letter was sent on to HMRC for any response, and after some administrative confusion, a reply was received from Mr Greenshields. We admitted both the initial letter and the reply and take both into consideration in this case.
4.The background is that Mrs Prochazka, who is of Dutch origin, came to the UK from Holland on 16 May 1969 to work as an au pair. She left in June 1970 but returned on 16 August 1970. At that time she had only studied English for some 2 hours per week. On 10 October 1970 she married Richard Prochazka. Having started work at the High Wycombe branch of Woodward and Stadler, on 7 April 1971 she registered for NI, having, according to HMRC's records, elected not to pay NI contributions as from 8 March 1971. Those records give the date of her birth, of her arrival in the UK and of her marriage, and refer to her starting work on 7 April 1971. They also record her then address and her education. Her name is misspelt, and she was not from 1969 to 1970 in full-time education, as the record states.
5.At the time, if a woman wished to opt out from paying NI contributions she had to provide evidence that she was married and form CF9 had to be completed. The usual practice was for an employee to attend...
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