National Insurance Contributions - Housewife

Wrath_of_Kain

I hear there is a cut-off 5th April to decide on making voluntary NI contributions to make up shortfalls.

My wife is trying to navigate the .gov forecast path but having issues as it doesn't seem to recognize her, thinking she may not have updated something after we got married? Once i get this info will post it up.

So her scenario and its a very rough estimate/chronological (will update):
Number of years 16-18 yo - 3yrs
Number of years in part-time work - c. 5yrs
Number of years as student @ Uni - c. 4yrs
Number of years in full-time work - c.3yrs
Number of years housewife (kids) only - c. 2yrs
Number of years housewife (kids) and part-time work - c.15yrs
Number of years Full Time work only - c. 2yrs
Remaining working years to retirement c.14 years

In fact by listing it, I am beginning to wonder if its worth even considering looking at potential number of gap/ fractional/ low income years, what do you think ?

One of the under pinning issues is the housewife element which constitutes a large chunk c.17yrs. I now understand, didn't back in the day, that when the child benefit became means tested that you should have continued to claim it even in the full knowledge that you wouldn't have been entitled and they would give you NI credits. So we missed that opportunity from 2013 - 2021 c. 7 years.  Are you allowed to appeal this and how would you go about this ?

Many thanks
Wrath

calcotti

Wrath_of_Kain said:

Are you allowed to appeal this and how would you go about this ?

Don't see how she can appeal about something she didn't do. 
(It is true that the implications of stopping CB was not highlighted by HMRC at the time the HICBC was introduced nor was the option to claim CB but decline payment. Bad policy compounded by poor delivery.)

If she was earning over the lower earnings limit from her part time work she will have been treated as having paid NI contributions even if she wasn't earning enough to actually pay any. 

Linton

Better to spend the time working out how much extra State Pension could be gained by making voluntary NI payments.  Your wife should check how much State Pension she has accrued from https://www.gov.uk/check-state-pension.  This is will give a much better idea of her situation.

Note that you can currently make voluntary payments for the tax years 2006/7-2022/3.  This period is reduced to 2017/8-2023/4 at the end of this tax year.

Wrath_of_Kain

calcotti said:

Wrath_of_Kain said:

Are you allowed to appeal this and how would you go about this ?

Don't see how she can appeal about something she didn't do. 
(It is true that the implications of stopping CB was not highlighted by HMRC at the time the HICBC was introduced nor was the option to claim CB but decline payment. Bad policy compounded by poor delivery.)

If she was earning over the lower earnings limit from her part time work she will have been treated as having paid NI contributions even if she wasn't earning enough to actually pay any. 

Thought I saw someone on here that was appealing it ... not sure outcome though. I think another factor is which partner is registered when you were getting CB .... could well have been my name as I drew the short straw in dealing with the family finances.

Yes like you say very poorly rolled out and  even if we had known that is what you had to do, completely impractical, i mean having to self-declare when you are PAYE for something you dont actually get. Been speaking to work colleagues and the vast majority are in the same situation so wasn't just us being ignorant. 

Wrath_of_Kain

Linton said:

Better to spend the time working out how much extra State Pension could be gained by making voluntary NI payments.  Your wife should check how much State Pension she has accrued from https://www.gov.uk/check-state-pension.  This is will give a much better idea of her situation.

Note that you can currently make voluntary payments for the tax years 2006/7-2022/3.  This period is reduced to 2017/8-2023/4 at the end of this tax year.

Yes thanks aware of the cut-off this year hence the post.

Yeah she tried registering but it doesnt recognize her .... probably an update required since marriage .. will hopefully resolve soon.

p00hsticks

In your shoes I wouldn't spend more time trying to reconstruct her record yourself - without knowing things like whether her part time work took her up to the Lower Earnings Limit or not (amd so earned her NI credits without paying NI) it;s not going to be particularly helpful.

Concentrate on getting her State Pension forecast and identifying where the gaps in her NI record are from the .gov uk site (or she could try phone up the Future Pension Service, but may have a very lengthy wait...)

https://www.gov.uk/future-pension-centre   

I susepct that her position won;t be as bad as you fear - she'll have three years automatic credits for the ages she turned 16,17 and 18, at least another 5 from when she's worked full time and from the sounds of it some from Child Benefit - note these are only awarded until the youngest child reaches 12 so she may not have missed out as much as you think.

Wrath_of_Kain

p00hsticks said:

In your shoes I wouldn't spend more time trying to reconstruct her record yourself - without knowing things like whether her part time work took her up to the Lower Earnings Limit or not (amd so earned her NI credits without paying NI) it;s not going to be particularly helpful.

Concentrate on getting her State Pension forecast and identifying where the gaps in her NI record are from the .gov uk site (or she could try phone up the Future Pension Service, but may have a very lengthy wait...)

https://www.gov.uk/future-pension-centre   

I susepct that her position won;t be as bad as you fear - she'll have three years automatic credits for the ages she turned 16,17 and 18, at least another 5 from when she's worked full time and from the sounds of it some from Child Benefit - note these are only awarded until the youngest child reaches 12 so she may not have missed out as much as you think.

Just trying to get a quick first pass on it just now ..... fully intend getting the forecast but dont know yet what the problem is or how long that will take to sort.

Thats a good point regards 16-18 years.

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

molerat

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

The on line access is definitely needed as although the required information can be got in paper form the departments are very slow in responding and anything requested now is unlikely to be processed by April.  Speaking to the FPC may get some more information.

Wrath_of_Kain

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

molerat

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Wrath_of_Kain

molerat said:

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Ah thats clearer thanks .... would all that info/ calucation be available in the forecast ?