Inland Revenue not paying NI contributions

deverejet

Hello, I Just discovered there is a huge delay with the Inland revenue paying over monies owed from NI contributions, I have opted out of SERPS about 10 years ago, and each year apparently my empoloyer/s would send a year end statement to IR, they inturn would pay the company I have opted out to supposedly by the end of January 06, they have not done that this year, due to a delay within IR and their new computerised system and also with delays in people submitting their tax returns on line, they advise me they will consider compensation for any money my company, whom I have opted out to would have made, and they need this to come from the particular company who invests on your behalf, the IR have advised me I am not the only one, there are thousands of people in the same boat, they must be making a mint on interest for all this held money !!!!

YorkshireBoy

I've had similar problems this time as well.

My NICO payment for 2003/04 was paid to my stakeholder pension in September 2004, but my 2004/05 payment wasn't made until December 2005.

When I queried this I was told by HMRC that they have a backlog, but have until the end of the following tax year to make the payment, ie last December's payment could have been made as late as April this year.

The issue of compensation for the impact on my pension fund was flatly refused!

Am I correct in thinking that HMRC get the information from the employer by 31st May following tax year end? If so, then delays such as these are inexcusable!

dunstonh

I've spotted quite a few late this year but not all of them.

penrhyn

Deverejet,

This is slightly off topic but should you be opted out of SERPs or the S2P.
There are no longer any incentives for people to contract out and most would probably do better being back in the state scheme.

I would recommend you take independent advise on this

YorkshireBoy

penrhyn wrote:

There are no longer any incentives for people to contract out...

I can get my NICO funded pension element at age 55 (I think?).

I can choose the fund(s) I invest in (to try & get a better return).

The Government may change the way they run S2P.

Can I also take 25% of my NICO as a lump sum on retirement?


These are incentives for contracting out - aren't they?

dunstonh

There are no longer any incentives for people to contract out and most would probably do better being back in the state scheme.

There are still incentives. Not the old 1% bonus for doing it but there can still be very good reasons and benefits achieved by doing it.

edit: Yorkshireboy posted at almost the same time with a few reason. I add a few more below.

Death benefits can be another reason.

There are also potentials. Such as if the Govt abolish S2P in favour of a new state pension of a single amount. Contracted in benefits could be lost whereas contracted out benefits wouldnt be. This has happened in the past so it cannot be ruled out in the future.

Also, if young enough and earning enough the critical yield to achieve more would be around 7% per annum. That is not unrealistic with the right sort of investment portfolio