H E Manning v Her Majesty's Revenue & Customs

Facts

The appellant, Mr H E Manning, was born on 19 April 1938 and attained the age of 65 on 19 April 2003, shortly after the start of the 2003-04 tax year. He was self-employed throughout the period from 6 April 2003 to 5 April 2004 and filed a self-assessment return showing profits from his self-employment of £17,382. The Revenue issued a decision dated 31 March 2006 to the effect that he was not exempted from paying Class 4 contributions in respect of those profits and that the amount he was liable to pay was £1,021.36. Mr Manning appealed to the Special Commissioners. His accountant, Mrs Feldman of Feldman & Co, argued on his behalf that he had been discriminated against as a self-employed person: an employed earner ceases to pay contributions on attaining 65, whereas a self-employed person is excepted from Class 4 contributions only if he was already over pensionable age at the beginning of the year of assessment, so that Mr Manning remained liable for the whole of the year in which he turned 65. The Revenue contended that the charge was in accordance with the law as set out in the notes accompanying the tax return, in Leaflet CA 72 and in Manual NIM 24510. The appeal was heard in London on 28 June 2006.