In this week’s Enews, we look at

• 800,000 self-employed individuals could have gaps in their NI record
• Business group calls for government to build trust in AI among small firms
• Business group outlines three-point plan for new government

HMRC will write to nearly 800,000 taxpayers who could have gaps in their National Insurance (NI) record.

The issue affects taxpayers who became self-employed between 2015 and March 2024.

According to HMRC, taxpayers who receive a letter or those who utilise its online pension forecast tool and identify gaps in their NI record ‘will be able to make contributions further than the usual six previous tax years and at the original rate’.

Gaps in NI records may also have arisen where Class 2 National Insurance contributions (NICs) were paid after the 31 January deadline or where payments were used first to clear outstanding tax liabilities rather than NICs.

The letters will be sent to 160,000 taxpayers aged above State Pension age or within two years of State Pension age. These will be sent by summer 2027.

HMRC is urging taxpayers to check their Self Assessment tax returns for previous years to confirm if Class 2 NICs have been made.

Internet link: ICAEW

The Federation of Small Businesses (FSB) has called for the government to help build trust in artificial intelligence (AI) amongst small firms.

It stated that Kanishka Narayan, the government’s new AI Minister, has the ‘opportunity to help small businesses unlock productivity gains from greater AI adoption’.

In a new report, the business group found that 59% of all AI users have seen productivity gains and 24% have increased their revenue.

However, some 92% of small firms still harbour concerns about AI, the report showed. These worries include data security, copyright and liability.

‘It’s great to see the new government taking AI seriously and recognising how important it’s becoming to the economy,’ said Tina McKenzie, Policy Chair at the FSB.

‘The technology is moving at pace, but too many are asking basic questions about data, copyright and liability, and they deserve clear answers.

‘The new AI Minister has a real opportunity to make the UK the best place in the world for small firms to adopt AI, but that will only happen if he puts trust at the heart of the government’s approach.’

Internet link: Federation of Small Businesses

The British Chambers of Commerce (BCC) has set out a three-point plan for the new government.

According to the BCC, Prime Minister Andy Burnham must focus on trade, investment and productivity to support businesses and help the UK economy thrive.

Ensuring that firms have the confidence to invest is essential if they are to expand, create more jobs and adopt new technologies, the BCC said. However, too many businesses face barriers that hold back long-term investment decisions.

The business group has urged the government to create the conditions that encourage investment.

It also called for a full commitment to a fully funded, multi-year workforce plan for the UK planning service to enable increased development, more jobs and stronger local economies.

The BCC called for an acceleration in infrastructure delivery and improved access to supply chains in order to maximise the economic returns from investment, and for the government to reduce unnecessary burdens that increase costs.

Internet link: British Chambers of Commerce