Confusion over missing NI qualifying year

c1l2s3

Hi there,

Just wondered if someone with genuine knowledge might be able to help me with my confusion, having had mixed advice from HMRC themselves!

I have a gap in my NI record and its for the year my first daughter was born (end of April 2006). I was made redundant during my pregnancy - company when into administration - and subsequently claimed Maternity Allowance in place of getting my maternity pay. I can't find any paperwork so I'm unsure of the exact dates I started claiming.

I actually phoned HMRC initially to pay the voluntary contribution to plug this gap (£412), but was then advised to claim HRP which has since been refused as I wasn't claiming Child Benefit for the whole tax year. Fair enough, but I can't help but think I should have a full year here with the combination of maternity allowance and then child benefit?

If not, my shortfall should only be around 3 weeks since child benefit started end of April so £412 seems steep, or do I get no credits for almost the whole of her first year?

I will go ahead and pay the contribution if I have to but having had mixed advice from HMRC and the future pension centre I just wondered if there's anyone out there who has a confident answer for me!

Thank you!

molerat

HRP was only available for full tax years unlike the current child benefit credits so yes you have missed out for the sake of a few weeks.  But pre 1978 you wouldn't have been entitled to anything at all.

But do you really need to pay for that year ? What are you doing at the moment ?

Post up the full details from your forecast and we can take a look and give some thoughts.

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

p00hsticks

I can't answer your question I'm afraid, although I agree with you that £412 seems steep if you are only missing a few weeks. When you click on the year in question, does it say how many weeks does it say you have and is the made up of payments or credits ? 

And are you sure that it is an issue worth bothering too much about -  are you confident that making the year up to full will boost your state pension (how many full years prior to 2016 do you already have ?)l 
 

c1l2s3

It doesn't say how many weeks, but it says I have £25.20 from paid employment. I did not work at all in this tax year so that's confusing!

I'm currently not working due to combination of staying at home with children while they were young, fostering a high needs child for several years, and now my other half has a comfortable salary which has meant I've not needed to go back to work. My youngest is off to secondary soon though and then turns 12 in February 2024, so I know contributions from CB will stop and I'll either go back to work or make voluntary contributions.

Current weekly amount is £143.63 up to 2023
I've got 22 full years (all full post 2016 and the rest pre)
I reach retirement age in 2051
This is the only year I can top up as the other gap I have is 2003/4

molerat

So you need another 11 years to reach the full amount with 28 years to get there. Are you continuing to foster ? If so that will continue to give you credits.  Personally I can't really see the point in paying a (half price)  back year with so may years going forward, you have plenty of opportunity ahead.  Put that money into a personal pension instead.  That part year needs around 26 weeks to fill, each week costs £15.85.  Maternity pay is technically employment pay so there is a possibility you may have paid and been credited with NI.

c1l2s3

Thanks Molerat.

No longer fostering so no credits there. Thank you for the advice though, I can see what you mean. Plenty of years to get there. Think I panicked a bit because there's a deadline to pay and then I'll no longer have that option. There must be lots of stay at home parents in the same position with a missing year, but weirdly HMRC couldn't explain it simply to me. So much conflicting advice. The future pension centre even told me that because I had got some of my years of credits from Carers Allowance (while fostering), that I would be 'owed' years from CB... I know this is not true obviously!

I've used my personal pension allowance for this year but will try and get creative with my £412