National Insurance Contribution Queries

JB9302

James , sorry if I wasn't clear its Jan 2017 .

jamesd

Ah, in that case it is after the flat rate comes in so you should disregard my whole previous post.

You can't increase what you get by making voluntary contributions before the flat rate system comes in, so best to wait until you find out your foundation amount and act then.

JB9302

jamesd wrote: »

Ah, in that case it is after the flat rate comes in so you should disregard my whole previous post.

You can't increase what you get by making voluntary contributions before the flat rate system comes in, so best to wait until you find out your foundation amount and act then.

Thanks James

FatherAbraham

jamesd wrote: »

The new minimum qualifying year requirement is to be ten years.

I feel the need to rush in and point out that the "ten years" minimum must take account of periods of social insurance in other EU (maybe even EEA) countries.

So it depends massively upon where one's "abroad" (OP) is. There are huge social security benefits to working in elsewhere in the EU, rather than outside the EU, since reciprocal social-security benefits are an important part of the single market for employment/labour.

So, even under the post-2016 UK state pension rules, it will be possible to have a tiny UK state pension based on just one year of UK National Insurance contributions -- as long as one has at least nine somewhere else in the Union.

Warmest regards,
FA

gadgetmind

ringoroses wrote: »

I was looking at registering as self employed to pay the next 5 years class 2 to make up the deficit, but I have no idea what this involves. Can I just register and pay, or does that trigger a minefield of other paperwork relating to my "business"?

You can register online or you can complete forms CWF1 and CA5601. Make sure you say that you want to pay Class 2 NICs even if you don't earn enough.

You will need to think of a job title and make sure it won't cause your car insurance to be loaded. We used one that made insurance cheaper than "Housewife" that was also honest.

You will almost certainly have to fill in a self assessment every year, but this is also online and a doddle if you don't have much/any income.

ringoroses

Thank you Gadgetmind, that's very useful information.

jamesd

FatherAbraham wrote: »

I feel the need to rush in and point out that the "ten years" minimum must take account of periods of social insurance in other EU (maybe even EEA) countries.

Thanks! I didn't know that.

Henry84

Thanks for the advice Spidernick, Jamesd, and FatherAbraham.

jamesd wrote: »

You need a minimum paid in amount in a year to make it qualify, rather than a specific number of weeks, though for voluntary purchases it will be expressed in weeks so use them for that.

Yes my optional voluntary contributions are expressed in weeks in the letter received from HMRC. For each past year they are offering me, they have 'shown their workings' so to speak, by calculating 'contribution rate' multiplied by 52 weeks, and then the total beside each tax year. I was just hoping that I could instead multiply the 'contribution rate' by a lesser number of weeks for each year, yet still acquire each qualifying year. Perhaps pushing my luck too far?!

Spidernick wrote: »

Also think about whether there actually will be a state pension by the time you retire

That is a scary thought. Surely the state pension won't ever be abolished?

FatherAbraham wrote: »

I feel the need to rush in and point out that the "ten years" minimum must take account of periods of social insurance in other EU (maybe even EEA) countries.

So it depends massively upon where one's "abroad" (OP) is. There are huge social security benefits to working in elsewhere in the EU, rather than outside the EU, since reciprocal social-security benefits are an important part of the single market for employment/labour.

So, even under the post-2016 UK state pension rules, it will be possible to have a tiny UK state pension based on just one year of UK National Insurance contributions -- as long as one has at least nine somewhere else in the Union.

I am aware of this agreement; I have been working in Republic of Ireland for seven years, but I would ideally like to keep my British and Irish pensions separate, in the hope of claiming two state pensions upon reaching retirement age. Not sure what the tax implications would be of claiming two state pensions, but I would like to think that I would still be better off after tax.

Thanks once again for all replies

kidmugsy

The wife of a friend of mine paid self-employed NICs while working as a restaurant reviewer.

We all used to say "Having your cake and eating it, eh?"

atush

That is a scary thought. Surely the state pension won't ever be abolished?

most unlikely as the govt who did it would NEVER be elected gain. I say no chance.

What will happen is, the age to get it will go out, esp if LE keeps increasing.