NIC statement?

tgon

Does HMRC issue NIC statements listing contributions year on year? Just wondered as it seems my wife's a few years short of her 30 qualifying years and our recollection is 34 years employment (but not sure if stamp was paid in all those years). Thx

Linton

Best way to get this confirmed is to request a state pension forecast from http://www.direct.gov.uk/en/Diol1/DoItOnline/DG_182601

gadgetmind

The pension forecasts that I have seen don't have a year-by-year breakdown, but I'm told that you can ask for this.

jamesd

They don't give statements but on the phone they were content to tell me the amount of earnings each year and whether that year counted, while I took notes. You should first get a state pension forecast, then contact the Future Pension Centre.

atush

Funnily enough, I got a US pension statement from Social Security, and it does have a year on year breakdown, starting from my first 'official' job at age 16.

I didn't ask for it, they just sent it.

tgon

atush wrote: »

Funnily enough, I got a US pension statement from Social Security, and it does have a year on year breakdown, starting from my first 'official' job at age 16.

I didn't ask for it, they just sent it.

Exactly what I'm looking for - except a UK one! I dont know how accurate NIC records are over the decades but in the mix of working out if she should be buying back qualifying years it just strikes me as a little odd that she may not be able to check and match against her own recollection. (Although she might well have kept all P60's since being 15 to make it easier for me )

gadgetmind

tgon wrote: »

working out if she should be buying back qualifying years

I looked at buying some years of class 3 for my wife, but it was about £655 per year. Instead she filled in the form to say she was self-employed and she voluntarily pays £2.60 per week in class 2 NICs.

She's going to earn about £30 this year, so no further tax or NI, and she might do a little better next year. Either way, she'll be earning more qualifying years, which is nice.

tgon

I'm not sure I understand. Are you saying that if I pay for the services of a "Domestic Goddess" at the princely sum of £30 pa, then Class 2 NIC's for the next few years (6 until state retirement age) would tip the 30 year balance? I thought there was a minimum earnings threshold per year which PAYE would deduct NIC's thus making a qualifying year.

gadgetmind

tgon wrote: »

Class 2 NIC's for the next few years (6 until state retirement age) would tip the 30 year balance?

Yup, class 2 gives you qualifying years, but you need to pay class 2 for the whole year, so wait until March before sending in the form and the start of April before starting the standing order.

I thought there was a minimum earnings threshold per year which PAYE would deduct NIC's thus making a qualifying year.

The self employed aren't on PAYE. If a self employed person earns less than £5,315 per year, they don't have to pay class 2, but they can choose to.

http://www.hmrc.gov.uk/ni/volcontr/basics.htm

It's £2.50 a week, so £130 a year, which is dirt cheap considering how much extra pension it gets you.

Watch what you choose as a profession as some will weight you car insurance, however, if you choose something involving horticulture then insurance can be less than "housewife" or "retired" - see the MSE guide on car insurance and job title.

The self employed person will undoubtedly be sent a tax return, but these are easy as you can skip 90% of the pages.

Do Your Own Research, but I ran this past my accountant and he just said, "Yes, standard practice.", and attached the relevant form.