National Insurance - Cheeky Blighters!

PsiDOC

Morning all.
This morning I had a bill from the N.I. people for £232. Now seeing as I am expecting a rebate for 2 years over payment of self employed N.I. I was a bit perplexed. It had the usual warnings about if I didn't pay this it may affect my pension etc and I should pay by the 26th January.
So on the blower I got and spoke to them. It turns out that this was for voluntary contributions for 1998 when I was working abroard. After discussing it with the lady on the phone we decided it'll make no difference to my pension and just send a covering letter back saying thanks but no thanks and cancel the bill. Cheeky ******s!

The Moral to this story is:
No matter how threatening the bill may seem from the Taxman and / or N.I., if it's not expected query it. They may just be trying it on.

Psi

Heidi17

Hiya, I've got a similar problem and not sure whether to pay or not. I was a student from 97-99 and I've got a letter saying I need to pay voluntary contributions of £476.25 by April 09. I've know for a while about this and that I don't necessary need to pay it, but I am just concerned that I should. Does anyone know if there are any real consequences of not paying this? Will I be penalised or will Pension Credit just make up the difference when I am old? Anyway haven't got a spare £500 and probably never will! Also have you noticed that you can only pay it in full and they will not permit you to pay in instalments? Seems strange to me.

System

Heidi it's not a demand and there are no legal consequences for you. They are just giving you the opportunity to make a 1 off payment to make that year count towards your state pension as at the moment you haven't paid enough in that year for it to count.

EdInvestor

Anyone retiring after 2010 will only need 30 years NI conts to get the full state pension.

Get a statement of how many years you have already and a forecast of how much you'll get when you retire here:

https://www.thepensionservice.gov.uk

There are actually 2 state pensions, so you may be pleasantly surprised.

Just_landed

Pam17 wrote: »

Heidi it's not a demand and there are no legal consequences for you. They are just giving you the opportunity to make a 1 off payment to make that year count towards your state pension as at the moment you haven't paid enough in that year for it to count.

Pam17 Could you tell me or anybody in the know :- If I have paid my stamp for say 22 weeks this year then pay 30 weeks next year would the two added together make one years worth, towards your basic pension ? please.

CIS

You can't use part years of contributions for State Pension Purposes (unless they where pre 1975) , you need full qualifying years to count.