National Insurance contributions shortfall

frankyappa

I am in receipt of State Pension and it is topped up with Pension Credit for myself and my wife who lives with me but does not currently work and is not signing on.

She has nine years of National Insurance contributions, but needs ten to qualify for a State Pension. What options does she have for adding an extra year.

If she became self employed and was entitled to Working Tax Credit, I believe she would get a NIC credit, although I would lose my additional Pension Credit for her which is probably more than WTC.

Any ideas as to the best solution?

Linton

She can pay voluntary Class 3 NI at about £760/year for this year, or a bit less if she can claim for previous years. See https://www.gov.uk/voluntary-national-insurance-contributions

molerat

OP also posting here https://forums.moneysavingexpert.com/discussion/comment/74577024#Comment_74577024

frankyappa

Struggling with Government Gateway is always a nightmare!

As I understood it, if you get Working Tax Credit your NI will be credited.

Also not sure when the previous year's records are announced. They were still being checked last time I managed to check.

drumtochty

You need to get aan up to date state pension statement for her.


If you register her as self employed with HMRC before October 2018 you can add the self employed page in her tax return next April and get a years NI for £150, if that has not already been credited when you get her updated statement re he.r working tax credit

sleepless_saver

Just checking. Are you sure you're not in a universal credit full service
area? If you are, she won't be able to claim tax credits. Under UC if you expect your wife's earnings to be very small, you are probably better off staying on pension credit. There is also a savings limit which does not exist with tax credits.

edited to add: not to mention the more stringent requirements around self employment under UC.