Correct NI Gap Filling Help.... 1 March at 8:32PM edited 1 March at 8:36PM in Pensions, annuities & retirement planning 15 replies 597 views

invisible_member

Hi molerat,

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?    

Aristotle67

I have just posted in another thread but it might be relevant to what you may be going do. I paid six years of missing class 3 contributions using the one reference number I was given and one lump sum payment. Only the year 2016-17 has been amended as being full; the pre-2016 years have yet to be added. Hopefully just taking longer to process. 

molerat

invisible_member said:

Hi molerat,

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?    

So they are saying it is not a case that you could have paid but didn't but should have paid (unless you applied for exemption) but didn't so you are in default ?  I think there something about defaulting buried in those social security regulations if you want to have a dig through the whole thing. Talk about your past sins coming back to bite you

pinnks

Just a thought but did you default for post 2014/15 years under Class 2, or did you think you were paying when, in fact, you were not?  The latter happened to a friend of mine. 

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.

invisible_member

molerat said:

invisible_member said:

Hi molerat,

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?    

So they are saying it is not a case that you could have paid but didn't but should have paid (unless you applied for exemption) but didn't so you are in default ?  I think there something about defaulting buried in those social security regulations if you want to have a dig through the whole thing. Talk about your past sins coming back to bite you

Yes, that pretty much sums it up....

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....