Gaps in National Insurance record

jod1710

Hi my son needs son help in understanding his NI record please,

I’ve already phoned HMRC for him but the lady working from home was unsure and didn’t understand my sons NI record either.

He is only 20 born 1999. His NI record says he has 2 yrs that are not full. 

2016-17 when he was only 17 (and only worked a few months that year and earned just £2358)

and

2015-16 when he was only 16 and didn’t work at all as was still in school.

2016-17 says you are checking to see if it counts towards his pension 

2015-16 says he didn’t make any contributions this year so he can make up the shortfall of £795.60 by 2023 but this may increase after April 2021 !!!!

I know juvenile credits to NI were stopped in 2010 but how can he when he was only 16 owe £795.60 ???

His years 17/18 18/19 and 19/20 are all full years as he is registered as self employed and paid his NI contributions each time after submitting his self assessment tax return.

We just don’t understand 16/17 and 15/16 when he was still a child saying he has to make up a shortfall. 

Any advice would be greatly appreciated it’s hard getting through on the phone and like I said whom ever we spoke to at home last time didn’t know the answer.

The lady did forward our enquiry but we have just received a letter today that still doesn’t explain anything it just says 1 sentence 

“Juvenile credits were not longer awarded after 5th April 2010 so you are not entitled to them as you turned 16 after this date”

 So does mean they are expecting him to pay a shortfall for 15/16 when he was 16 of £795.60?

Thank you, kind regards

molerat

It is purely a statement of fact, 2015-16 is not full and will cost £795.60 to fill. Everyone not paying NI will get gaps there from now on, with an amount to fill them, as they are no longer freebies. You don't have to make up the shortfall but you can if you wish.  There is no point in doing so though as it will give no benefit (apart from a warm and fuzzy feeling inside for helping to replenish the government coffers).

JGB1955

It doesn't say he HAS to make up the shortfall, only that he CAN.  It would make no sense whatsoever to do so.  Ignore it.

83705628

If you paid the £795.60 you are in effect "buying" 1/35th of the state pension (if it still exists by then, and even if it does I'm 26 and I'm making my retirement plans based on it being at least 70). But if he's going to work another 32 years anyway (or claim benefits, or whatever you can do to get full NI years) then there's no advantage to paying the £795.60 because his current 3 years + 32 more years = 35 and that's all you need to get the max state pension.
(I've got a feeling that I've said something wrong though ...)
Unless you actually WANT to give money to the government, whatever floats your boat mate I don't judge 🙄

xylophone

He doesn't have to pay anything at all.

NI is payable for workers from age 16 - if a person isn't working then they don't have to pay NI.

Your son is of an age where all his working life will be within the new state pension regime.

His SPA will be at least age 68.

He has plenty of time to qualify for the state pension.
https://www.pensionsadvisoryservice.org.uk/about-pensions/the-state-pension

jod1710

Thanks all for replying its appreciated, yes it doesn't say he HAS to but it does say the shortfall will increase from April 2021 if he doesn't ! I wish it was more simple for him to understand as he doesnt want to do anything wrong but yes he has plenty of years to get to the Max of 35 years Thanks again