§ Dr. Boyson
Since 6 April 1975, class 1—employed earner's — national insurance contributions have been payable on directors' fees. The information contained in form CF71 applies to national insurance contributions payable from that date up to 6 April 1983, by directors who received drawings in anticipation of fees and for whom the Department had previously prescribed an earnings period other than an annual one. The form explained that legal advice had been received that in this type of situation an annual earnings period must be applied. It went on to say that if there had been an underpayment of contributions, the Department would not enforce payment of any arrears, but because entitlement to benefit might be adversely affected, the Department was prepared to reassess liability and collect arrears if the directors so wished. The onus was left on the directors to respond to this offer.
Since 6 April 1983, under new rules for assessing directors' contribution liability, all directors have an annual earnings period, whatever the pattern of their earnings.