Shortfall in National Insurance Contributions

mr_fishbulb

I think this is what this BBC news article is talking about:
http://news.bbc.co.uk/1/hi/business/5301710.stm

When will it be decided?

jamesd

Yes, that's part of it. It won't be decided until the bills have passed but the speech itself is on 15 November. Expect plenty of news coverage.

steveouk

thank you for your replies I will await more information as time goes on regarding the reforms.

ashm1

Hi,

2004-5 tax year NIC shortfall letter arrived today.

This one is a little worrying compared to the 03-04 one as I have been working since July 2004.

edit: tax record is complete. I will need to visit the Inland Revenue.

Bill is 36 weeks total £257.40

Any ideas?


Kind regards,

Ashley.

jamesd

Ask for a state pension forecast. If that shows that you can get to 30 years total, wait and see if the minimum age for a full basic pension is reduced to 30 years. Then you need to consider the calculation for S2P and perhaps SERPS, since that is still based on total years, not with a 30 limit and I haven't seen anything indicating that it will change to 30 years.

ashm1

I ended up sending copies of all my paysilps for that tax year, P60 and P45's.

I've just read this news story http://news.bbc.co.uk/1/hi/programmes/moneybox/6184519.stm

I haven't had any response yet but will chase after Christmas.

Hywel_2

I've just received my letter off the HM Customs & Excise saying that my 2004-5 tax year NIC were missing by 52 weeks and £371.80.

Quite amazing since I was in full employment for a government organisation for the entire year.

Looks like there's been a major balls up yet again. Why aren't people ever sacked for these mistakes? This 4.7 million (as mentioned on the bbc article) mass mailing would have cost us taxpayers a fortune.

andre1717

jamesd wrote:

Yes, that's part of it. It won't be decided until the bills have passed but the speech itself is on 15 November. Expect plenty of news coverage.

Has anything been sorted out yet, please. just wondered if you only need 30 years NI conts for a full state pension now as Im 48 and unemployed now. after starting work at 18 so have just about 30 years credits .thank you [

jamesd

Still no change to plans but still no law passed either. Still wait and see time or if you have a cheap option to buy one old year that is about to expire, paying for that one year knowing that you may lose the money might be worthwhile.

Beate

There is an article in today's financial section of the Sunday Express titled "Pension top-ups refund storm" which basically says that any top-ups paid since 25 May of last year, which is when the new legislation about 30 year's worth of contributions instead of 44/39 years was announced, would be entitled to a refund. The Pensions Bill becomes law later this year and they do not know yet how to refund payments.
My friend has paid the powers that be £710.55 last September which consists of a shortfall for the tax years 2000/2001 up to the tax year 2003/2004. Unfortunately, he will turn 65 on 4 April 2009, so, as the new rules will apply to anyone retiring in April 2010 or later, does that mean he will not get this money refunded because he is just one single year too old?