Claiming NICs

LadyIndigo01

Hi.
I wonder if anyone can help please. I have checked the HMRC website but I cant work this out and seem to be going round in circles:
My brother is unable to work due to mental illness and has claimed ESA in the past. However he stopped claiming a couple of years ago as he inherited some money which took him over the threshold for claiming. We recently checked and he has gaps in his NI record.
1. Is he able to claim NI contributions for the recent years when he didn't claim ESA?
2. If not does he have to wait until the remainder of his inheritance falls below the threshold and then sign up for ESL and NICs?
3. Can he submit a back claim for NICs? and if not what is the best way to work out whether we should to pay a voluntary contribution to make up the shortfall?

antrobus

See here, National Insurance credits;

https://www.gov.uk/national-insurance-credits/eligibility

You're not on Employment and Support Allowance but you satisfy the -conditions for it - Contact your local Jobcentre to claim Class 1 credits

No idea if it can be backdated.

LadyIndigo01

Thanks. I wasn't sure if he 'satisfies the conditions' as he is currently over savings the threshold

sammyjammy

He should have continued to claim ESA for the NI credits only.

xylophone

http://www.thisismoney.co.uk/money/pensions/article-3725546/I-m-ill-NI-credits-state-pension-Steve-Webb-replies.html

Alice_Holt

LadyIndigo01 wrote: »

We recently checked and he has gaps in his NI record.
1. Is he able to claim NI contributions for the recent years when he didn't claim ESA?
2. If not does he have to wait until the remainder of his inheritance falls below the threshold and then sign up for ESL and NICs?
3. Can he submit a back claim for NICs? and if not what is the best way to work out whether we should to pay a voluntary contribution to make up the shortfall?

Re 2: He can reclaim ESA now and that claim will be a NI credits only claim until his savings fall below £16k and he is able to get income related ESA payments.


I'm assuming the reason for paying NIC's would be for the State Pension entitlement ?
The new SP requires 35 years NIC's to get the full £164pw.

Get a pension forecast to see what the current entitlement is:
https://www.gov.uk/check-state-pension

Re 1 & 3) I believe the only way to get NIC's for these years would be voluntary class 3 NIC payments at c.£733 per year. This guide is helpful:
https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf/

You will need to be careful not to make unnecessary voluntary payments, so:
if he is likely to achieve 35 years without Vol NIC's;
or if he is likely to be eligible for Pension Credit:
then voluntary payments may be wasted.

It may be worth posting your question on the pension board, but more info would be needed i.e.:
Brothers Age,
Years to retirement,
NI record to date.