Ill Health Works pension AND self employed wasn’t paying NI contributions, can I buy them now?

mamabuddah
mamabuddah Posts: 826 Forumite
Name Dropper First Post First Anniversary
edited 26 June 2023 at 2:52PM in Topping up your state pension
I’m aged 67 now, retired from work on “ill health” round about 2000 and was in receipt of workplace pension so no NI contributions were taken, although I believe that me being in receipt of Incap Ben at that time covered my credits. Around 2006/2007 I decided to come off the benefit and try to work, not necessarily for income, more for peace of mind and something to do, so I registered with HMRC and started submitting accounts and paying any tax liabilities. To be fair they weren’t great profits and HMRC eventually wrote to me to say I wasn’t  making much of a profit and I didn’t have to submit any more. Eventually I stopped doing what I was doing and eased into my Ill  health retirement properly.
I am now in receipt of my State Pension and my Works Pension (still paying tax ☹️) and reading forums and watching Martin Lewis I’m wondering about “making up” any deficit in contributions.

I had the option of making up a part year when I came off benefit and started trading, the gap was end 2006 to April 2007 (about 3 months) which I didn’t take up at the time, (I think I still can but don’t know if that year would actually then be counted and add to my SP).

My question would be, can I buy back some pension contributions for the time I was “self employed” at the same time as being in receipt of my work pension? I wasn’t sure at the time, I’m even more confused now as I read if your profits were below a certain amount you DID’NT have to pay contributions…but what if you realise now…it would’ve been a wise move to increase your state pension?

which dept are the people to ask…I realise phone lines are jammed these days…HMRC. Future Pensions. Any pointers? Happy to see what you have to say, at the minute my pension appears to be about £40 short of what it could be every 4 weeks if I’d max contributions.
No two ways about this one: Anything Free is not a Basic Right..it had to be earned...by someone, somewhere

Comments

  • p00hsticks
    p00hsticks Posts: 12,765 Forumite
    First Post Name Dropper Photogenic First Anniversary

    which dept are the people to ask…I realise phone lines are jammed these days…HMRC. Future Pensions. Any pointers? Happy to see what you have to say, at the minute my pension appears to be about £40 short of what it could be every 4 weeks if I’d max contributions.
    Not Future Pensions, as they won't be able to assist now you are above State Pension Age. 
    If you have access to the Government Gateway you should be able to get your NI record up and see exactly how many years you have before 2016 and what gaps there are to fill. Post those details her, together with the exact amount you get now and people here should be able to help further.  

    The 'official' course of action for someone in your position is to contact the Pension Service for advice 
    Contact the Pension Service - GOV.UK (www.gov.uk)
    The problem you will find is that - unlike the Future Pensions Service - they won't be able to advise you directly over the phone, but rather will apparently just take your details and pass them on to a back office who will contact you. 

    Alternatively, if you are confident in what you are doing, you can get in touch with HMRC directly to buy the years, either by phone or by post. 

    As you currently have less than the new State Pension Maximum of £203.85, any post-2016 years available for you to buy up to (but not including) the tax year in which you reached state pension age will each add £5.82 a week to your pension until you reach that maximum. Note that as you can't exceed that,  the final year could add anything between a penny and £5.82 depending on what you start with....
Meet your Ambassadors

Categories

  • All Categories
  • 343K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards