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National Insurance - not paid
Frith
Posts: 8,816 Forumite
I have a friend (it's not me!) who hasn't paid National Insurance contributions for several years. I have mentioned this is not a good idea a few times and they are now going to do something about it, I think.
They worked for about 5 years post-uni but were made redundant, were stressed about signing on, and have lived on tiny bits of cash in hand work since. I would think they have been unemployed for 5-6 years and have paid no tax, national insurance or anything else during that time.
They have asked what will happen? Will they have to pay it back - in one go or in instalments? I said I am worried they will have no old age pension or miss out in other ways but I don't really know what will happen!
It's really not my field of expertise so I would be really grateful for any help.
They worked for about 5 years post-uni but were made redundant, were stressed about signing on, and have lived on tiny bits of cash in hand work since. I would think they have been unemployed for 5-6 years and have paid no tax, national insurance or anything else during that time.
They have asked what will happen? Will they have to pay it back - in one go or in instalments? I said I am worried they will have no old age pension or miss out in other ways but I don't really know what will happen!
It's really not my field of expertise so I would be really grateful for any help.
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Comments
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Have they been employed or unemployed for 5 years your post is very confusing.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £56099
Cc around £32000 -
You don't have to pay national insurance if you don't earn enough.
They'll still get a pension and if they don't get a big enough pension it'll be topped up by income based benefits such as pension credit.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
They were employed for 5 years then unemployed for 5-6 years. They didn't sign on so their national insurance wasn't paid.0
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You don't have to pay national insurance if you don't earn enough.
They'll still get a pension and if they don't get a big enough pension it'll be topped up by income based benefits such as pension credit.
Hasn't Pension Credit been phased out for people in the future?
There are new rules being introduced for pensions shortly, with a maximum of about £144 per week but you have to have paid for a minimum of 35 years. A shorter period will equal a smaller pension."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
See the Direct Gov website about NI contributions, how to get a statement and how to pay back missing contributions on a voluntary basis (worth doing because of the 35 years worth needed to get a full pension).
I believe you can pay back up to the previous 6 missing years so he needs to start acting soon before the years he can repay start to shrink.
Get him to sign on so his NI gets paid if he's still not working.0 -
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