N.I One offer some advice??

persontypething

Trying to sort out my funds generally, I remember getting a letter 3 or 4 years ago, suggesting I should top up my NI contributions, but at that time I couldn't afford to do it. However now I have some spare cash (kind of!) and was wondering, should I try to square up with the mighty tax bods, find out my tax history and make sure the contributions are up to date.
I have been working full time the past three years, so should have incurred any further charges.

Sorry for being a dunce- have got the mortgage, pension and ISA sorted- just a decent savings account and tax situation to sort now.

Thanks in advance for your advice!

EdInvestor

Get a state pension forecast here

They will tell you if you need to pay up for missing years.

Midas

You also need to think about the recent government response to the Turner Report. If I remember correctly, this proposed reducing the number of years with a full national insurance record that are needed to get a full state pension to 30.

So you may not need to top-up.

Midas

See here

"The number of years it takes for people to qualify for a full basic state pension will be cut to just 30"

CIS

Remember that the Turner report is just that, a report.

No one knows for definite that the rules are going to be changed or when or even how its going to be phased in.

until the actual changes are announced its better to play it safe and use the current rules as the they stand and will stand for the current foreseeable future, until changes are announced.

In the end its better to covre your NI record than find in future that its too late to help yourself.

EdInvestor

Actually the Government has now confirmed that the plan in the White Paper to switch over to 30 years in one hit in 2010 will go ahead, it will not be phased in.

http://www.publications.parliament.uk/pa/cm200506/cmselect/cmworpen/uc1068-iv/uc106802.htm

Scroll down to Q275

However this is so obviously unfair that there's very likely to be a big row about it IMHO.

CIS

Maybe not, but I do not think there is a way, if I am being absolutely candid with the Committee, of phasing in and therefore softening the change because that minimises its impact

I like this quote,obviously thought up by someone who wont really be affected by the change financially. They obviously haven't thought it out properly and I can still see it changing once it gets to the people who write the rules as they will stand.

EdInvestor

By the time he's had a few demonstrations of rage by the 56-60 year olds, then he might feel that "minimising the impact " is exactly what's needed.

Midas

CIS wrote:

Remember that the Turner report is just that, a report.

Indeed, but the government response to the Turner report which I mentioned above is a White Paper with a broad consensus behind it. Both major parties seem to be in general agreement that this is the way things are going. More importantly, even Gordon Brown seems to have finally agreed to it.

Bearing in mind that you are generally given 6 years to catch-up with voluntary NI payments, it would be crazy for people to pay these at the moment unless this is the sixth available year. Others can be safely delayed 'til next year, by which time the legislation may have been passed in its final form.

EdInvestor

...it would be crazy for people to pay these at the moment unless this is the sixth available year..

IMHO it would only be crazy for people who had already accrued 30 years worth of NI contributions.

persontypething

Thanks for your advice people- much appreciated. I just wish I could provide a bit more help and advice myself sometimes! I'm learning all the time though- thanks again...:T