tax credits and NI credits

LindaSecker54

Dear all

Me and my OH have recently received details of our NI records and find we are missing some years (me just one, him 6...) This is rather worrying!!

For all the years involved (2001 through to 2006) I was in receipt of what was then called Disabled persons Tax Credit. We thought that we both got an NI credit every week we were on this..... so assumed our NI record was complete..... Our joint income was also very low.

Do any of you clever people on here know if either or both of us should have had NI credits?

Obviously we are going back some years now, so it's not going to be simple. I don't have any records of our claims for instance....

Thanks and regards
Linda

LindaSecker54

anybody?

sheramber

http://revenuebenefits.org.uk/tax-credits/guidance/how-much-can-your-client-get/national-insurance-credits/

WTC and NI Credits

Broadly, people who get WTC with earnings below the LEL (or as a self-employed person your earnings are below the small profits threshold, £5965 per year) should get the following types of NI credits:-

If you receive basic WTC - Class 3 contributions only, which protect entitlement to state pension , certain bereavement benefits and widowed parent’s allowance.
If you receive basic WTC and the disability or severe disability element of WTC - Class 1 contributions, which protect entitlement to state pension, bereavement benefits and some other state benefits.

Joint claims and NI credits

If you have a joint claim to WTC, the legislation treats WTC as paid to the person with earnings. If a couple both have earnings, then the person who is physically paid the WTC will receive the credits This latter point is extremely important as many sources of information on this topic from HMRC and DWP refer to people ‘getting’ or ‘receiving’ WTC in order to receive the credits which can mislead joint claimants into believing that it makes no difference whom they choose to be paid the WTC. Following representations from LITRG, since 2012 TC600 notes now carry a warnings message, however prior to this date the notes were silent on this point. If any claimant has missed out on credits as a result of making the wrong election prior to 2012/13, providing their partner was not given or did not need the credits, a complaint should be made to the Tax Credits Office (TCO and onwards to the Adjudicator’s Office if necessary. More information can be found in our making a complaint section.

NI credits paid in respect of WTC entitlement should be made automatically but you can ask HMRC for a statement of your National Insurance record to check whether you have paid the correct contributions and whether you are receiving any automatic credits. More information on how to do this can be found on the GOV.UK website.

LindaSecker54

Thanks Sheramber that is really useful!

For the years my husband is missing credits on his NI record, I shall follow up or complain to TC.

maybe you can help me a little further?

For the year I am missing (02/03) I have 33 credits, 687 'NI earnings' and no class 1's 2's or 3's. I THINK this means that for the 02/03 year, I earned £687 in a job, and had only 33 weeks Tax credit (or at least, 33 weeks NI credits from Tax credit...)

However, I was self employed the whole year, (as well as the little job which I started only at the end of the tax year) and in receipt of DPTC the whole year. I was claiming DWA and then DPTC from early 1999 and they did randomly stop it from time to time, but it always re-started and there would only have been a gap of a week or two at most in any one year....NOW, I have no records going back this far, so I don't know if I claimed a small earnings exception that year... it's possible. But something here doesn't add up. If I didn't claim a small earnings exception, why was I not billed for class 2's. if I DID claim SEE, why didn't I get credits from TC?

I have asked the NI people about it, but all I've had are stock replies (although they did find 1 year that counted that they originally said didn't....)! I guess I'm really asking, a) is there anything else I might be missing, and b) I'm trying to work out WHAT to ask, of which department

I hope that all makes sense...

Thanks again
Linda

sheramber

Can the Contributions Agency tell you which weeks are missing credits?

Can they tell you if you claimed small earnings relief at that time?

If so, you may be able to reconcile things.

If the tax credits stopped you may not have been given credits for those weeks but if you had claimed small earnings relief then that would still apply resulting in missing weeks.

I would write to them as I feel a written reply is more likely to be given proper research than a call centre reply where the person has limited time to answer.