Transfer of NI credits 14 January 2020 at 8:08PM edited 30 November -1 at 12:00AM in Pensions, Annuities & Retirement Planning 10 replies 302 views

annabanana82

My Husband (42) is a stay at home Dad and we'd thought the child benefit was giving him the NI credits but they were coming to me. I've completed the forms online on the 2nd January and not heard anything yet it does say 15 days so I realise I'm jumping the gun a little.

Just wondered is this an easy process, it'll make a huge difference as he currently he still needs 18 years of contributions for his state pension and he has just applied to Uni so may not start full time work for 4 years if he gets in.

Additionally is there anyway for a mature student to get NI credits other than paying it ourselves?

Many thanks

Dazed_and_confused

it'll make a huge difference as he currently he still needs 18 years of contributions for his state pension

Is that based on a forecast obtained through DWP/gov.uk or the impression he needs 35 years?

annabanana82

Dazed_and_confused wrote: »

Is that based on a forecast obtained through DWP/gov.uk or the impression he needs 35 years?

That's going through the Government gateway, he has done some part time work but not enough to earn credits. But he been in ill health the last year so will not be able to return the work he's used to as planned later this year, hence the university application.

Dazed_and_confused

That's ok, a lot of people posting on here are under the mistaken impression 35 years is important. Which it isn't for those already in the system when the new rules started.

molerat

From experience turnround time for NI credit transfer is generally 4 to 6 weeks unless there is a query.

annabanana82

Thank you, one less thing to worry about

Paul_Herring

Additionally is there anyway for a mature student to get NI credits other than paying it ourselves?

Earn at least £118 a week - current minimum wage puts that at 13/14 hours a week.

annabanana82

Paul_Herring wrote: »

Earn at least £118 a week - current minimum wage puts that at 13/14 hours a week.

I think that might be a bit too much for him in the first year at least. He'll have to make up for it afterwards assuming he gets in.

Dazed_and_confused

Additionally is there anyway for a mature student to get NI credits other than paying it ourselves?

The cheapest option when it comes to paying it himself would be for him to start a small/micro business and pay voluntary Class 2 National Insurance.

Completing a Self Assessment return in his situation may take 5 or 10 minutes but Class 2 National Insurance is c£150 in comparison to c£750 for voluntary Class 3 National Insurance.

annabanana82

Dazed_and_confused wrote: »

The cheapest option when it comes to paying it himself would be for him to start a small/micro business and pay voluntary Class 2 National Insurance.

Completing a Self Assessment return in his situation may take 5 or 10 minutes but Class 2 National Insurance is c£150 in comparison to c£750 for voluntary Class 3 National Insurance.

That could well be an option, thank you.

Dazed_and_confused

This is an extract from the tax return notes for 2018:19.

Trading Income Allowance
If your combined receipts from self-employment (excluding Rent-a-Room trades) and certain miscellaneous income (read page TRG 8, Box 17 Other taxable income) are no more than £1,000 they are exempt from tax and do not need to be reported on a tax return unless the receipts are from a connected party. This new allowance applies to any receipts that would otherwise be included on your tax return for the year ended 5 April 2019.

If your income is no more than £1,000, you may choose to complete the ‘Self-employment’ pages if:

• your allowable expenses are higher than your turnover and you want to claim relief for the loss or carry forward a loss to be used against future profits
• you expect your turnover to exceed £1,000 in the next tax year
• you want to voluntarily pay Class 2 National Insurance Contributions to build entitlement to contributory benefits like the State Pension
• you want to preserve your record of
self-employment, for example to support an application for Maternity Allowance
• you would like to claim Tax Free Childcare based on your self-employment income
• you’re a subcontractor and want to claim back tax deducted under the Construction Industry Scheme (CIS)