Gap in National Insurance contributuions (NIC's)

Touser

Hi,

Today I received a letter from HM Revenue & Customers regarding the Gap in my National Insurance contributuions (NIC's) for the tax year 2007/2008.

I have been offered the chance to make up this gap by paying £382.20.

I'm 28 and currently have 8 years of NI contributions and should retire in 2049.

Is it worth me making up the contributions to make 2007/2008 count?


Thanks for you time...

Oldernotwiser

It may depend on your plans for the next 40 years! You'll need another 22 years' contributions for a full pension so you've got plenty of room to manoeuvre.

stazi

Are HMRC's records correct?
What did you do in the tax year?

Touser

stazi wrote: »

Are HMRC's records correct?

Yes the HMRC's records are correct...

magicgirl

i have had same letter a few years back but i didn't bother paying. if i had teh money i would have done but as teh letter pointed out, teh reason for the gap was down to 'home responsibilities' (having children) and i was on low income and just couldn't justify losing £356 or whatever when i was struggling to pay rent bills and childcare!

you gotta see your own circs and if you can afford it.

anotherginger

i got this letter recenly too, but have decided not to pay. i rang them and they said you only need 30 years to quality now, and as i'm 25 i have plenty of working years left. i was also told that if i had a child i would get 12 'free' years added on.

if i were you i wouldn't pay, you have paid 8 out of 30, meaning that you only need to be working 22 more years to qualify. you will have reached your qualifying amount by 50 anyway.

boxrick

I just got a similar letter... i need another £48 to make up my shortfall. Im 23 with 4 years contributions.

However 2007/8 i earned less than £4k due to working part time ( i think ) but i was still paying tax which i never claimed back.

Anyone got any advice ? Should i pay for this shortfall or am i do i need to do a massive tax sorting?

suelees1

I don't think anyone can tell you what you should do. It's already been confirmed you'll need 30 years contributions to get a full pension. This can be made up of contributions or home responsibilities protection. If you think you'll have sufficient by the time you retire then there's no point paying out anything now

anotherginger

boxrick wrote: »

I just got a similar letter... i need another £48 to make up my shortfall. Im 23 with 4 years contributions.

However 2007/8 i earned less than £4k due to working part time ( i think ) but i was still paying tax which i never claimed back.

Anyone got any advice ? Should i pay for this shortfall or am i do i need to do a massive tax sorting?

i have four years contributions and they wanted around £120 quid for that year. as i said, i've decided not to pay due to my age. even if i don't have kids i have 4 years, so 26 more years to get to the 30 year contributions (when i will be 51 and still have a good few years working left!)

farmerboy

boxrick wrote: »

I just got a similar letter... i need another £48 to make up my shortfall. Im 23 with 4 years contributions.

However 2007/8 i earned less than £4k due to working part time ( i think ) but i was still paying tax which i never claimed back.

Anyone got any advice ? Should i pay for this shortfall or am i do i need to do a massive tax sorting?

We have had a similar situation with the wife, she is currently on the 12yrs for having kids, but before we had Becky she worked part time and fell below the payment threashold. If she signed on she would get the credit, but then you have those hoops to jump through. Just another case of being peanilised for trying to find work

TLusty

Thought I'd bump this one, because I've just received a similar letter. The thing is, I was in full time employment for the whole of that year (in fact I have been for the last 10 years). I'm on PAYE, and I just checked my P60 for that year, and I paid what looks like the right amount of NI.

In fact, just checked on a 2008 tax calculator, and that comes up with the same number as my P60.

So, what's the likely issue here? Has HMRC made a mistake? Or maybe my employer? Any ideas?

I've returned the CA93A form so I'll see what comes back.