NI contributions

Pobby

My wife is due her state pension in April next year at the age of 61. We have just found out her employer has not taken any contributions for NI since July. I feel sure this is incorrect.

My wife and I were business partners for many years. It has also come to light that at the same time she was paying NI through he employer she was also, by direct debit, paying the monthly self employed stamp. I understand that she would be able to get back the overpayments.

Thanks for reading.

atush

Her employer has to take the NI deductions and pay them to HMRC.

Was the NI listed as being deducted on her payslips? Has she spoken to HR? I have a firend who has had problems because her PAYE was not paid over to HMRC, but was collected and HR have to deal with this.

Was she earning less then 103 per week?

If you have paid double contribs, then you may be able to transfer some of that overpayment to cover the missing year but am not sure. Do think you will be able to receive back the overpayments though. Like you always can with overpaid income tax.

le_loup

It used to be that NI contributions stopped at 60.

atush

I think they take them up to the state pension age now, so it would depend on where she is now in that sliding scale as women are no longer able to retire at 60.

But past over contribs can be reclaimed, and if she doesn't need the money and she is short one year she could take a deferred SP to make up for the missing year?

zygurat789

If you have self-employed and employed income then you have to pay NI contributions on both. There are minimum levels of income for each.

xylophone

She will only need 30 qualifying years for a full state pension?

McKneff

Not sure about getting the overpaid contributions back but best thing to do is give them a ring and ask.

Theres a freephone number I believe for the DWP

atush

The 30 years sin't for people retiring now- it starts in a year i think?

McKneff

atush wrote: »

The 30 years sin't for people retiring now- it starts in a year i think?

No, it started either April gone or April 2010, just after I was 60 and had to have 39 years.

atush

Ok I thought it was 2012 ;-)

chris_m

xylophone wrote: »

She will only need 30 qualifying years for a full state pension?

That's only to qualify for the full SP.

You don't stop paying NICs once you've paid for 30 years - only when you stop working, or your earnings drop below the threshold for paying them.