advice on volunteering National Insurance - and being sometimes self employed

wallofbeans

Hi All,

Like many I'm wondering if I should be paying off missing NI contribution years to help my state pension. 

The estimate based on my NI record up to April 5th 2022 is £110.46. The forecast if I continue to contribute another 15 years before 5 April 2041 is the max £185.15. 
I will reach state pension age in Feb 2042 under the current rules. 

I'm not sure what COPE is all about but I'm aware that it could make a difference, and apparently I was contracted out and my COPE estimate is £0.53p a week! 
  
I had a good few years not working and/or working freelance and not having any idea what I was doing and no decent advice, I didn't pay NA contributions. I have 21 years of full contributions, 11 years when I didn't contribute enough, and 19 years left. I think most of those not paying enough years are lost, some of which look as though they are very close to being full but I don't think I can add to them anymore. I do have five I could pay off, between 2010-11 and 2014-15, but all need the full amount except for 2010-11 and needs £396.25 to make it a full year.

Is there any point paying off that year or any of the others that need the full amount?
Is there any way to pay of the older years that look as though they are almost full?

I've tried contacting HMRC about this but can never get through, and havent had a response to the email I sent. So any advice much appreicated!  

molerat

You can only pay for years 2006-07 and later, the NI record will show if they are available to pay or not.  You have 19 years to get the required 15 to reach the full amount and possible another 1 will be added to your retirement date by then.  Not really worth paying for that year, you just need to ensure you keep on top ofcontributions going forward.

wallofbeans

molerat said:

You can only pay for years 2006-07 and later, the NI record will show if they are available to pay or not.  You have 19 years to get the required 15 to reach the full amount and possible another 1 will be added to your retirement date by then.  Not really worth paying for that year, you just need to ensure you keep on top ofcontributions going forward.

It is entirely possible that I will taking a couple of years sabbatical (most likely entirely unpaid) from the day job and I wonder, with that in mind, would paying this £396.25 for 2010-11 be a sensible idea?

Frustratingly, it's 2001 and 2002 that seem to have 42 weeks of contributions, so I assume if allowed they would probably be a cheap top up. There was no way I would have had any idea what was going on with NI contributions back then though!

wallofbeans

Hi again all,

I'm checking whether I should pay off my 2010-11 NI year of £396.25 --  but also am getting the impression that topping up self employed tax years is cheaper than PAYE, and if so several of my missing following 2010-11 are when I was self employed. 

Can anyone advise on how I'd check what I would need to pay to cover them, and how I go about doing it? On my HMRC account is just states the full amount and makes no reference to the fact that I was self employed and submitting tax returns during any of those years. 

molerat

You need to speak to HMRC about your eligibility to pay at class 2 rates.  For some years you will need to have registered for a small earnings exception to be eligible to pay, if not then you will only be able to pay class 3.  And you are now up against the clock with only a month to go before those years are cut off.

wallofbeans

molerat said:

You need to speak to HMRC about your eligibility to pay at class 2 rates.  For some years you will need to have registered for a small earnings exception to be eligible to pay, if not then you will only be able to pay class 3.  And you are now up against the clock with only a month to go before those years are cut off.

I was working fully self employed and did tax returns for tax years ending April 2014 and April 2015. Those are the ones I am wondering about. I don't remember ever registering for a small earnings exception and don't think I ever new anything about it, so am I out of luck?

molerat

so am I out of luck?

Only HMRC can tell you that.

wallofbeans

molerat said:

so am I out of luck?

Only HMRC can tell you that.

And they are so easy to contact...