Missing (and topping up) National Insurance Contributions during a PhD

Simon4

Hi,

I've just started a PhD, on the back of two MAs (thus two years full-time not working), and I'm interested in finding out how I can check whether I have missing NI contributions with a view to topping them up.

I'm also interesting in finding out how I can top up the said contributions. On different forum and website posts I've seen quotes for how much this is (when full-time studying, receiving the standard stipend (£14k)) which vary from £8 per month to £400 per year.

Does anyone know where I can get detailed information on what my status should be as a full-time stipend-receiving student. (This is complicated by the fact that I used to be self-employeed, I've notified HMRC, but I still have an account and they still bug me to do a tax return each year).

Many thanks

Simon

agrinnall

This page contains several links that may be of use to you, although I'm not sure if it'll be detailed emough to cover PhD stipends, you maye need to contact HMRC to find out about that (if you can leave it for a few months that might be best as they will be very busy just now with the SA deadline approaching then end of tax year).

http://www.hmrc.gov.uk/ni/index.htm

jennifernil

Is it worth it ? These days you only need 30 years of contributions for the State Pension.

Presumably you could pay voluntary contributions?

I don't see that your PhD stipend has any bearing on the matter, it does not count as income.

Simon4

Oh okay, I wasn't sure whether it counted as income, so that's useful, thanks. I guess I'm not sure whether it's worth it, that's why I want to check my status.

I also just found this from the Direct.gov website (it won't let me link to it, but search google for this phrase: "Do you need to top up your National Insurance contributions?"):

How do you know if you have a gap in your National Insurance contributions record?

There are a number of ways you can find out:
Receiving a 'Gap in your National Insurance record' letter
Requesting a State Pension forecast (pensions and retirement planning section)
Ringing the National Insurance Enquiry Line

Thanks everyone.

jennifernil

If you are likely to be close to the 30 year requirement (more likely for a woman taking extended time off to raise a family, or if you might want to retire early) then if you get a letter about missing contributions, you could consider paying up on any years where you are only missing a small amount.

Otherwise I doubt it is worthwhile these days.

atush

Wont you even work part time during your study?

jennifernil

Many Unis these days only allow PhD students to work within the Uni, doing stuff like tutoring, labs, marking and exam invigilating. When the student does this, the uni usually works out the hours over the year to keep the payments below the NI threshold.

bristol_pilot

You will receive letters during and after your PhD offering you the 'opportunity' to buy missed years, but to do so is likely to be a waste of money - and there are no refunds!

You only need 30 years contributions for a full state pension. Years spent at college and university (first degree) count towards this. Purchased added years do not count towards JSA or other benefits, only the state pension.

(You might not miss 3 years contributions doing a PhD - if the first and final years are covered by working and paying contributions for part of the year).

If you do miss lots of years later in life, because you have a career break for family, you will have the opportunity to buy back some of those years if it really looks like you might not make the 30.

If you do a PhD and start working full-time thereafter you will acquire the 30 years necessary for a full pension by your late 40s - giving plenty of margin to retirement date, especially since state retirement age gets later and later!

atush

I thought when the 30 yrs is established, they were no longer giving credit for college and Uni ( but these were included under the old scheme). but not sure?

snowcat53

bristol_pilot wrote: »

You will receive letters during and after your PhD offering you the 'opportunity' to buy missed years, but to do so is likely to be a waste of money - and there are no refunds!

You only need 30 years contributions for a full state pension. Years spent at college and university (first degree) count towards this.

Exactly right. In the same situation I recall wondering whether to take up the 'opportunity' and am very glad I did not as it would have been wasted money. Dont worry and look at it closer to retirement.

Simon4

jennifernil wrote: »

Many Unis these days only allow PhD students to work within the Uni, doing stuff like tutoring, labs, marking and exam invigilating. When the student does this, the uni usually works out the hours over the year to keep the payments below the NI threshold.

Yes, that's right. I actually had another question about this which I was going to post in another thread.

Last year I did some tutoring, and I earned the grand total of £368. Despite the fact that I've told HMRC I'm no longer self employed, they are still asking me to do self-assessment forms.

So I did one, entering just this amount, and zeros on pretty much most of the form. And was told I had to pay £50. Which I've now done.

Is that normal?

Obviously £368 is way under the NI threshold, and presumably under the tax threshold too. So I'm not really sure why I had to pay anything.