National Insurance Contribution shortfall

Legacy_user

My husband has just got a letter from the National Insurance office telling him he underpaid NI during 2004-2005 by £370.00. If he wants that year to count towards his state pension he has to pay up before April 2011.

Now my husband (aged 46) has worked for the same employer for the last 28.5 years so what we are trying to find out before we call the NI office is this:

was there some sort of change to NI contributions in 2004-2005 which might explain a such a shortfall occurring?

There was no break in his employment during that year and neither was he on long term sick so why would his employer not take the correct amount of NI from his wages?

Optimist

Suggest you have a read of this thread, your situation is mentioned

http://forums.moneysavingexpert.com/showthread.html?t=284086

Milarky

For 2004-05 he needed to earn at least £4732 in the period he was working for his employer. £370 is worked out as so many weeks (@£91 each) short of this mark. Check his earnings (from the leaving P45: he should have kept his own copy) and see if this looks correct.

But now that the law is about to change to give full (basic) pension rights to anyone reaching state pension age with just 30 years of contributions he should consider not making that year paid up - as he only has 2 years remaining (years are always in whole numbers not fractions) and 19 years in which to work them.