Shortfall in National Insurance Contributions

Little_Mo_70

stagey wrote: »

hi - my total pensionable income will be under this amount pw- can I claim pension credit even if married and OH gets a total pensionable income of about £12000 pa(which will be taxed! of course)

Try the pension credit estimator on www.direct.gov.uk pensions credit page to find out if you are entitled

Little_Mo_70

User_Name_2 wrote: »

Can anyone even explain what the amount to make up a shortfall will be if one earns £4000 in the tax year 2010 to 2011?

No, sorry, but you could try www.direct.gov.uk or write or phone them.

sizzy6

I would like to ask a question regarding National Insurance Contributions and hope this is the correct place to do so, this is my first post so please make allowances for me.

What happens in April when the new tax codes come into effect, if someone is then not earning enough to pay tax or national insurance, does this mean they will have a shortfall in years to come?

jamesd

It doesn't mean that there will be a shortfall because it's only necessary to accumulate thirty years total. The year with low pay won't count as one of those. That's fine for a few years.

Wig

• I have read on HMRC that you can pay the last 6 years - no problem (at the rate it was during that year)
• I have also read on HMRC that you are not limited to the last 6 years only, that you can pay any shortfall of any year going back through your whole working life.....although the amounts will be higher (but it doesn't say how much higher)....I am probably mistaken about this after reading HMRC again.
• I have also just read this http://www.statepension.me.uk/state-pension/basic/faqs.asp

  New legislation in the Pensions Act 2008 allows certain people to buy up to an additional six years of voluntary Class 3 National Insurance contributions (NICs). This is over and above those permitted under the usual time limits, in order to enhance their basic State Pension entitlement. The new rules came into effect from 6 April 2009.More detailed information about the new rules and who to contact about paying can be found in the guides and forms section
  Frequently Asked Questions
  
  Who will be able to pay the additional six years Class 3 NICs?
  
  Individuals who satisfy certain conditions will be able to pay Class 3 NICs for up to an additional six years back to 1975.
  The new measure applies to individuals who:

  • reach State Pension age between 6 April 2008 and 5 April 2015
  • already have 20 qualifying years (including any full tax years of Home Responsibilities Protection (HRP))

  
  Individuals who reach State Pension age between 6 April 2008 and 5 April 2010 must have at least one qualifying year from paid or treated as paid National Insurance contributions.

  These last 2 points don't appear to square up. Either you can pay any years going back or you can't. So which is it?

One more thing....
I requested on 22/03/12 a NI gaps statement for the year 2005/06, hoping they would send it to me in time to pay it before 5th April 2012.

I just received it and it is completely empty for that year. On the statement it says the request date is 25/04/2012 which is wrong.

They have offered me to pay the complete year for £382.20 before 30/05/12. which is £7.35 per week which was the rate payable for that year. So they are offering it to me at the original rates even though I am now outside the 6 years.
Is this because the date I applied was before April 5th 2012? (even though they have put the wrong date of application on the statement)?

I wish I had also asked for year 2004/05 in the same statement then I could see the difference between an out of date year and the borderline year.

My dilemma is that they have only given me 3 weeks to pay. But I don't know if I now ask for a statement of 1986 - 2005 there may be some partially paid years within that which would be cheaper to top up than this whole year. If I'm allowed to pay these older years at the rate of the year it would be cheaper than paying this 05/06 year.

*if* you are allowed to pay any tax year going back however long, why is there a time limit to pay this offer by?

FACTS

• I need 17 more years to qualify
• I have 20+ years still to go before retirement age
• I could quite possibly be emigrating and so would have to pay class 3 from then on to get my full UK basic state pension as it is now £13+ per week it is going to be much more expensive to do this.

Top-ranking_Bug

:mad:I emigrated to the UK in March 2000, found a job a couple of weeks later and I have worked and paid NI ever since. I am due to retire in March 2018 if the Govt doesn't move the goalposts again. Anyway, I fall waaaaay short of the required 30 years for a full pension, and I wrote to the Pension Service asking to pay in voluntary amounts to top up. But I was told that I couldn't do so as .... wait for it .... I have unbroken service! Had I gone on the dole even once in the past 12 years, I could have topped up! I just don't get it! I am so hacked off!:mad:

p00hsticks

Top-ranking_Bug wrote: »

Anyway, I fall waaaaay short of the required 30 years for a full pension, and I wrote to the Pension Service asking to pay in voluntary amounts to top up. But I was told that I couldn't do so as .... wait for it .... I have unbroken service! Had I gone on the dole even once in the past 12 years, I could have topped up! I just don't get it! I am so hacked off!:mad:

I'm not an expert, and it's no help to you, but I don't think that a break in contributions would mean that you could go back and pay voluntary contributions to cover years in which you weren't even resident in the country - it would just be to cover that period of break in service (which would be covered automatically if you went 'on the dole' anyhow).

tallpaul0123

Hi,

I have found myself out of work and trying to claim JSA I was shocked to hear that I was not entiltled to JSA as I have not made enough payments in!
This was very strange as i have paid every year and worked since I was 16.

after calling the office I find that they have taken my tax year 09/10 and that was my last year of 3 at University. As this was my last year of uni I did not work as much (paid enough in year 1 and 2).
I have been told that im £340 short of earning the 50X or 25X stuff it all gets a little confusing!

Can anyone help with this as I really need the JSA I know its not alot but it will help!!

jules01

I wonder if anybody can advise me on a letter i received today from HM revenue and customs saying there is a shortfall in the 2010/11 tax year...

At that time i was in receipt of Carers allowance and Income support throughout with no gaps in that period.

I rang the Carers dept who confirmed that and as they have paid me it should be paid automatically to HMRC and will send me a letter confirming this.I rung HMRC who were not very helpful and just said unless its on the system there is nothing they can do.

I asked if its not on the system can i not just send them the letter that the carers allowance will send me,they said no.

The Dwp did'nt want to know saying that Income support is not taxable so its nothing to do with them.

Is there anyhing else i can do other than wait for a system that may or may not be updated with the right information?

molerat

There are a few guides, links to forms etc and "if you think HMRC's decision is wrong" here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190059