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Correct NI Gap Filling Help....
edited 1 March at 8:36PM in Pensions, annuities & retirement planning
15 replies 597 views
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In way of update,
Ok, so managed to get through to future pension centre today who confirmed that after the 1 year grandparent credit finalises, the 6 years 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012 would indeed create a full pension....
However, when speaking to HMRC after in regard to paying class 2 opposed to class 3 (lady seemed pretty knowledgeable), she said because I defaulted during these self employed years and not claimed small earnings exemption certificate, I could not use class 2 but only class 3.....
I did get a reference number for these years, but only on a class 3 basis.....I got this just in case I want to pay these early years and fight for a refund afterwards....
What do you think?
The way Class 2 is collected changed in, I think, 2015/16, when it began to be included on the SA return and paid along with the the January payment. My friend (vie their accountant) was duly adding the Class 2 to the return and thought they were paying it. However, HMRC was reversing it out and reducing the payments on the basis that my friend was not set up on the NI system as self employed, even though they have been paying Class 2 for years. This was an issue highlighted by the ICAEW and others. Given the relatively small reduction in the amount demanded my friend didn't notice the issue.
It wasn't until I started helping them with their state pension and any gaps that this came to light last year. A phone call to HMRC and the (re)submission of a CA1 form plus payment of the 5 or 6 years of class 2 got the issue sorted.
As previously mentioned, it was seemingly poor advice at the time from accountant stating that my husbands class 2 covered me also and was not necessary, so that was it really, never pursued (would have willingly paid otherwise).
It turns out that although I was always registered as self-employed as a partner etc at HMRC, I was never registered as self-employed for National Insurance purposes at HMRC.....at least, until me looking into filling gaps and contacting them early part of last year....
I did read somewhere last year that it should have been picked up from one HMRC department to the other, this making them equally liable for the error but not too sure.
Of course, will update if there is any breakthrough, but in the meantime thank you to all, especially molerat....