Underpaid NI Contributions

roger_c

To pay or not to pay that is the question??

I'm 23 and have been sent letters in the past about underpayments of NI contributions, one year it was near £100 and the next about £40. Is it worth my while paying these in the long term?

Thanks

Conor_3

IUt's all about your pension. You can send off for a report from the DWP about the state of your pension. It'll show the amount you'll receive with the shortfall and the amount if you repay the shortfall.

JimArnold

It's all about completed years - IMHO if you are £40 short it's probably worth paying but if you are £x00's then it may not be - esp if the government moves the goalposts again

CIS

You can request a state pension forecast, https://www.thepensionservice.gov.uk or, 0845 3000 168.

Bear in mind though that the forecast does show all NI that you can pay to make up qualifying years regardless of hwther its in your interest to pay.

The forecast will predict a pension based on your current circumstances on the front page. If this figure is 100%, then based on your achieveing the number of future years shown , you can achieve a pension without paying any of the arrears.

If the figure is predicted to be less than 100%, take a look at the section on the voluntary NI payments, this section will tell you if paying those backdated NI would get you a better pension and if so by how much.

Of course, as JimArnold says, if its only a low amount its worth paying now rather than gambling on an unknown future and regretting it later.

calmgirl

Ni is about £2.00 a week for the standard s/e individual put it in a jar every week and send it of at the end of the year

calmgirl

The cash in form of a cheque not the jar

CIS

To backpay contributions or to pay voluntary Class 3 contributions is currently £7.35 per week, to pay SE Class 2 conts is £2.10, but you woul dneed to justify registering Self-employed.