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Class 2 NIC missing - pension affected
TomsMom
Posts: 4,251 Forumite
I have received a pension forecast as I am hoping to retire at age 60 next January (I am female).
I am self-employed and had a Small Earnings Exemption Certificate for the 3 tax years 1996/97, 1997/8 and 1998/99.
My forecast tells me that I am short of Class 2 NICs for those three years and that my pension will be approximately £10 per week less than if I had made contributions during those years.
If I pay voluntary Class 3 NICs I can get the higher pension but this is going to cost me a total of £949.00.
My husband and I were under the (misguided?) impression that an Exemption Certificate meant you were exempt from paying any NICs and that you would not lose qualifying years.
Is there any way of retrieving these years as if we had paid Class 2 NICs the amount payable would have been far less than the £949.00 now required (it would have been £327.60 for Class 2s.)
Is there anything we can do?
I am self-employed and had a Small Earnings Exemption Certificate for the 3 tax years 1996/97, 1997/8 and 1998/99.
My forecast tells me that I am short of Class 2 NICs for those three years and that my pension will be approximately £10 per week less than if I had made contributions during those years.
If I pay voluntary Class 3 NICs I can get the higher pension but this is going to cost me a total of £949.00.
My husband and I were under the (misguided?) impression that an Exemption Certificate meant you were exempt from paying any NICs and that you would not lose qualifying years.
Is there any way of retrieving these years as if we had paid Class 2 NICs the amount payable would have been far less than the £949.00 now required (it would have been £327.60 for Class 2s.)
Is there anything we can do?
0
Comments
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If you have an exemption certificate, you do not pay Class 2 neither do you get it credited for you. It was a common query when I worked with State Pensions and a lot of people missed out on quite a few yrs becasue of it.
Your best bet is to ring NICO at Longbenton on 0191 2135000 and see what they can suggest.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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