Shortfall in National Insurance Contributions

ALIBOBSY

oldandgrumpy wrote: »

Recent letters from HMRC
NI Contributions office,11th Dec 2007:quote "I am pleased to tell you that you are entitled to HRP for the tax year, from 6th April 2006 to 5th April 2007"
Same office, same people 5th September 2008: quote "We are writing to tell you that there is a gap in your NI contributions for the tax year 2006-07...:
Next sentence: "If you want to you can pay pay £392.60 to make 2006-07 count as well".
Next sentence: "Your record shows that you have HRP for 2006-07."
Next sentence "If you want to make up the gap.....send us £392.60...
What a rubbish organisation this is.

You are not understanding how the legislation works. HRP does not "pay up" the ni for a particular year. It reduces the total number of years required to hit a full pension. So they are correct, you have HRP including that tax year, but you also have the option to pay the ni to increase the number of qualifying years on your account. You have the choice as to if you have a HRP year or a qualifying year.;)

ali x

ALIBOBSY

alanwsg wrote: »

OK, apologies in advance if this has been answered but I just got one of these letters and have been struggling through this thread without any useful result.

The letter says I have 28 years which count towards a basic state pension but I need 30 to get the full amount.

But, I have retired early and I have a deferred pension waiting for me when I reach 60. This pension is with BT, originally I joined the GPO so it is a good final salary scheme (yeah I know what you're all thinking: "you lucky bu**er").

Am I right in thinking that I am somehow "contracted out" of the state scheme and don't need to worry about this?
Or is it a problem I need to sort?

Thanks in advance.

There used to be "auto credits" where a man got free years credited between 60 and 65, when not working or claiming benefit.
This depends on if you are a man or a woman and is being phased out dependant on your date of birth. If you post the year of birth and if you are a man I can check for you. You may not need to pay anything.
p.s I assume you are a man from your user name, if you were born on or after 6th oct 1954 ignore me you won't qualify.

ali x

bestpud

seven-day-weekend wrote: »

Bestpud, I don't think buying more years will help if she has always paid married women's stamp.

If she DOES have any pension in her own right, it will be well worth getting a Pension Forecast and taking it from there as it will tell her these things

http://www.thepensionservice.gov.uk/state-pension/forecast/home.asp
.

That's the thing, she hasn't always paid the married womans stamp.

Most of her working life she has paid the full stamp. If she were able to buy six years worth now, it would make quite a difference to her.

Oh well, it was worth asking I guess.

seven-day-weekend

Bestpud, contact the Pensions Service, they will be able to advise her - it may be worth her while.

glitterkitty

bestspud - the new rules, when they come out, wont apply to your mum. its only for people who reach retirement age between 2008 and 2013. Unless she has any gaps in NI between 1996 and 2007, which she would be able to pay back.
however, since the new rules have not passed through parliament or have royal assent yet, they are subject to change so this could be different by the time it is made legislation

oldandgrumpy

Hi glitterkitty.
Can I refer you to my posting here on the 8 Nov. I pasted a reply I got from HMRC, which was entitled 'Advice to be given to members of the public enquiring about changes.... by the Pension Office staff. I think it says that the extra 6 years can be bought for missing years between 1975 and 2006. It is still very confusing, though. For instance, will the buy out be at the particular years rate, or £420? Will you be able to buy years AFTER you have acheived pension age? My wife is 60 MAy28 2009. If assent happens on April 5th, will she have time to buy the 5 years she requires for a full pension? I guess HMRC don't know as they have no advice to give other than my pasted posting.

glitterkitty

oldandgrumpy - as they havent made this legislation yet, none of those details have been decided.
However, your wife doesnt have to make the payments by the start of her pension, she can make them after she has started to get her pension and then the pension service will adjust her entitlment accordingly.
Unfortunately noone has any further information at the moment.

oldandgrumpy

Thanks glitterkitty, it is as I expected but what really bugs me is that our wonderfully pension funded civil servants have yet to get the detail right for something as important as this legislation, 4 months before it's due date!

loafofbread

Hi, I wonder if you guys can help me. Im quite confused regarding a gap my national insurance contributions for 2006-2007. I received a letter the other day basically saying I can pay £158 to make 2006-07 count towards my basic state pension.

I left uni that year in June/July and took the summer off. I started on JSA in August and eventually got a job which I was still in for the rest of that tax year.

I rang up HMRC today to ask about the amount as I thought £158 for 1 or 2 months was a bit much. But it appears that it is right and that I have 20 weeks missing. I can only think that it is because they are including my weeks at university as part of my missing weeks. But I thought your contributions were made for you when you were in full time education. Is this right?

Any info would be appreciated. Cheers.

terry2008

sorry, this may be a stupid question.

my wife has a HRP of 12 years which we understand means that the years for maximum pension are down to 27. however she only has 13 qualifying years and we haven't been able to find out what pension she is likely to get.

Is there a table that we can look up that tells you the how much in these circumstances (I'm sure there used to be a table telling you what percentage each year gave you - but it was only for the full 39 years -and anyway I can't find it now).

All advice gratefully received.