National Insuarnce and Income Tax

Joe_Bloggs

Thanks Savvy_Sue and CIS.
These procedures are what I went through to re-activate my original NI number. The staff at the DWP JobcentrePlus office were very helpful and understanding. I had a shock when I asked for a reference for the ID submission. The case officer in charge had the same sir name as me !
J_B.

hostertlady

pchelpman,
you seem to be up on this info.. can i ask you. i am not breaking the law or anything, i am not on benefits of any kind and my hubby works full time..
my question is... I work for one lady(not a business but a house, i do some housekeeping) so in effect am not actually 'employed' i dont pay tax or insurance and i dont get paid holidays/sick pay or anything like that... i love my job but feel i should be contributing NI towards my state retirement pension... I still get HRP cos dd is under 16.. how should i cover myself? i earn about £70 by the way..

pchelpman

You may or may not be self employed but, if you earn only £70 per week and that is your ONLY taxable income, then I doubt it makes any difference to anybody. It's below the starting point for both tax and National Insurance.

For the basic state pension you don't need to do anything more to protect yourself, it seems to me. That's exactly what the HRP is there to do .... safeguard your entitlement to the basic pension. Read more about it here ....

http://www.thepensionservice.gov.uk/atoz/atozdetailed/homeres.asp

You can ring 0800 99 1234 (free phone). They will be able to talk it through with you or, if they are not the right people, they will give you another number.

Again, hope this helps.

hostertlady

thanks for that pchelpman. i have applied online, thanks to these threads, for a pension forecast just to see how i am doing, i got one many years ago and it was very good how they do it.

CIS

Although your only working for one person and earning less than the tax and NI thresholds, you are still technically breaking the law by not having income declared to HMRC .

The person you work technically is also breaking the law by not registering with HMRC.

You may find that it may be better for you to pay the NI depending on your circumstances, HRP will only benefit your record if you have enough years of contributions on record. HRP isn't always all it seems to be.

HRP reduces the number of years you need for a state pension whereas a qualifying year gives you a year towards your pension.

compare
44 years required for 100% pension
20 years HRP, 11 qualifying years= ((100/24)*11) = 46%
20 qualifying years, 11 years HRP= ((100/33)*20) = 61%