Don’t know what to do for the best

Albermarle

pip895 said:

Albermarle said:

Silvertabby said:

I'm paying voluntary Class 3s (2 down, 2 to go).

They are already such a good deal I don't see the point in faffing about selling stuff on e-bay (with all the dangers that entails) just to be able to bend the truth on a tax return.

Sounds sensible. If you declare yourself self employed selling things on e bay , next thing could be HMRC enquiring as to your turnover , taxable profits etc 

You always needed to declare that stuff on your tax return anyway though you now need to have over £1000 profit to need to bother I believe.

However if you sell over £1000 pa of goods ( not counting unwanted possessions ) you are supposed to declare yourself as self employed/sole trader/business, even if your profit is below the £1000 trading allowance .

Scrounger

Silvertabby said:

I'm paying voluntary Class 3s (2 down, 2 to go).

They are already such a good deal I don't see the point in faffing about selling stuff on e-bay (with all the dangers that entails) just to be able to bend the truth on a tax return.

For those of us lucky enough to have been made redundant there is a cheaper way of obtaining NI credits than Class 3 or Class 2:

New-style JSA for 6-months followed by JSA 'credits only' using form: JSANC1.

I far as I know this then runs until SPA.

To me, it seems too good to be true (but don't look a gift horse in the mouth).

Silvertabby, you missed a trick there 

Scrounger

Silvertabby

Scrounger said:

Silvertabby said:

I'm paying voluntary Class 3s (2 down, 2 to go).

They are already such a good deal I don't see the point in faffing about selling stuff on e-bay (with all the dangers that entails) just to be able to bend the truth on a tax return.

For those of us lucky enough to have been made redundant there is a cheaper way of obtaining NI credits than Class 3 or Class 2:

New-style JSA for 6-months followed by JSA 'credits only' using form: JSANC1.

I far as I know this then runs until SPA.

To me, it seems too good to be true (but don't look a gift horse in the mouth).

Silvertabby, you missed a trick there 

Scrounger

Thanks, but no trick missed !

I chose to retire at 60.  In theory, I could possibly have 'signed on' for NI credits only - but that would have meant proving that I was actively seeking work and then facing sanctions when I refused any offers.  More of a faff than selling stuff on e-bay!

Scrounger

I understand ST, I do; I have read that there some people have sadly resorted to suicide as a result of these JC so called 'sanctions'.

Notwithstanding, I'm heartened to read in one of your earlier posts that you and Mr ST managed to 'bag some free NI credits at the start of your retirement after jumping a few hoops at the job centre.  So all is not lost.

I'm forever hopeful of landing a free HGV driving course - I wouldn't mind a week of driving big trucks. 

I've already done the Landrover 'Jungle' driving course when I worked for the Civil Service but I can't imagine that would helpful towards getting a 'normal' job.

Scrounger

Silvertabby

Scrounger said:

I understand ST, I do; I have read that there some people have sadly resorted to suicide as a result of these JC so called 'sanctions'.

Notwithstanding, I'm heartened to read in one of your earlier posts that you and Mr ST managed to 'bag some free NI credits at the start of your retirement after jumping a few hoops at the job centre.  So all is not lost.

I'm forever hopeful of landing a free HGV driving course - I wouldn't mind a week of driving big trucks. 

I've already done the Landrover 'Jungle' driving course when I worked for the Civil Service but I can't imagine that would helpful towards getting a 'normal' job.

Scrounger

We only jumped through those hoops because when we retired from the RAF we still needed 44 years (him) and 39 years (me) of NI conts - and missing just one year may have made a difference.  In fact, the advice to 'sign on' was given during our pre-retirement financial briefings.

The most annoying thing was the woman who tried to apply 'sanctions' because we didn't find jobs within 3 months.  She clearly hadn't bothered reading my records (obviously not entitled to actual cash benefits due to our RAF pensions)  because when I said that I was happy to wait for the right job to come along, she said that she would stop my 'money' if I didn't accept a job - any - job by a certain date.  So I said fine - and asked how much I would have to pay for my 'stamp'.  Totally confused her!

Mr S later received 2 years of new rules post 2016 NI credits as part of the SPA re-equalisation process (ie, a woman born on the same day as him got her State pension at 63 years and some months, but he just got NI credits and winter fuel allowance) so we haven't done too badly.

Scrounger

Thank you for the clarification.

Silvertabby said:

...we haven't done too badly.

Better than most, I would say. 

Scrounger 

Silvertabby

Scrounger said:

Thank you for the clarification.

Silvertabby said:

...we haven't done too badly.

Better than most, I would say. 

Scrounger 

Not bad for a couple of kids who left school at 15 ( Want to do O levels?  - don't talk daft - you'll get a job and bring money into the house like everyone else!)

Mind you, most of our pension income is from our combined 50+ years in the Armed Forces, so no guilt there!

Scrounger

The girl done good.

Scrounger

SomeMadeUpName

Albermarle said:

SomeMadeUpName said:

Dazed_and_C0nfused said:

Amateurretiree said:

I have an NHS pension of 15000 a year so am already paying tax, I’m 59 and fully retired .
Im three years short of a full State Pension due to being Contracted Out, so is it worth me paying the extra years as I’m just going to be paying more tax anyway?

I know I should be able to work this out myself but I’m just having a mental block.
My current state pension at 67 is currently £150 per week.

Thanks in advance.

Something is wrong with your figures.

You will need to purchase six post 2016 years to reach the standard new State Pension.

The first five will add £25.65/week and the sixth adds the final £3.95.

Even if you buy voluntary Class 3 NI it is amazing value for money.  If you can find an inflation proofed investment that is government secured that returns the same please let us know 🙂.

Something is wrong with your figures too (just a typo I assume):

The first five years will add £5.65 pw not £25.65

Sorry to be a pedant, but the deal is good enough without ramping it up fivefold!!

Each year you 'buy' gives you £5.13 extra per week . So if you buy 5 years your pension will increase by £25.65 pw.

Just seen this post, and your dead right, I just wasn't reading it as an aggregate figure .  So sorry, I wasn't being a pedant, just an idiot.