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HMRC Tax & National Insurance Sort Out

Hello,

I have several docs dated from around 15 years ago to now. I am decluttering all this paperwork/docs deciding which ones are important to keep and which ones to throw in the bin. I start with the oldest to newest according to dates on those docs:

- Letter from HMRC dated Oct 2008 letting me know there's a Gap in my National Insurance Contributions for the year 2006-2007. HMRC says I require 30 years to get the Full Basic State Pension. So if I do not pay to fill this gap then I lose a year and it wont be counted to that 30 years? What is the difference between a Basic State Pension & a Full Basic State Pension? The letter states the deadline to pay for this gap is April 2013 however I didn't pay so this gap cannot be filled anymore? If I can fill this gap then how do I do it and is the deadline extended until April 2025?

- I have P45's dated 2014 and 2022. Does the 2022 P45 replace the older colourful 2014 P45 or can I throw both away?

Cheers,

«134

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 16,271 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 22 July 2023 pm31 8:47PM
    The basic State Pension was only available to those reaching State Pension age by 5 April 2016.

    If you didn't reach SPa by then you will get the new State Pension.  And as you are under transitional rules for that there is no hard and fast number of years required.

    You should check your Personal Tax Account to see your State Pension forecast.  You need to read it all, do not focus on the headline figure (probably £203.85/week) as it's what you have accrued to date which is more important in understanding your options.

    And yes, for plenty of people the new State Pension is significantly higher than the old basic State Pension was.
  • badmemory
    badmemory Posts: 9,089 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    A P45 is irrelevant to anyone else once you are out of the tax year to which it refers.  You may need it to check that is the income figure that HMRC have for that year though.  I still have all 50 of my P60s though next time I come across them I will be shredding them.
  • bery_451
    bery_451 Posts: 1,879 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The basic State Pension was only available to those reaching State Pension age by 5 April 2016.

    If you didn't reach SPa by then you will get the new State Pension.  And as you are under transitional rules for that there is no hard and fast number of years required.

    You should check your Personal Tax Account to see your State Pension forecast.  You need to read it all, do not focus on the headline figure (probably £203.85/week) as it's what you have accrued to date which is more important in understanding your options.

    And yes, for plenty of people the new State Pension is significantly higher than the old basic State Pension was.
    Okay from reading your response my understanding is that I will be on the New State Pension and this new state pension will obviously be higher than the old pension due to taking in the account of Inflation?

    Alright where do I go to check my Personal Tax Account and where do I go to fill in the National Insurance Contribution Gaps?
  • bery_451
    bery_451 Posts: 1,879 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    badmemory said:
    A P45 is irrelevant to anyone else once you are out of the tax year to which it refers.  You may need it to check that is the income figure that HMRC have for that year though.  I still have all 50 of my P60s though next time I come across them I will be shredding them.

    So from my understanding for example a P45 that was issued after the 6th April 2023 (New Tax Year), then that P45 is still valid for that 2023 year and becomes invalid when Jan 1st 2024 new year starts?
  • badmemory
    badmemory Posts: 9,089 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    It isn't about inflation.  Current Basic state pension is £156, current new state pension is £203.  So almost £50 difference & getting bigger every year.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You can get a state pension forecast here

    https://www.gov.uk/check-state-pension

    What exactly does it say?
  • p00hsticks
    p00hsticks Posts: 13,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    badmemory said:
    It isn't about inflation.  Current Basic state pension is £156, current new state pension is £203.  So almost £50 difference & getting bigger every year.
    Whilst that is true, it isn't the whole story, as many people under the old scheme will have an additional sum from being contracted in, and could be getting considerably more state pension (in some cases over £300) than those under the new rules will ever be able to get. 
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 16,271 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 23 July 2023 am31 4:25AM
    bery_451 said:
    badmemory said:
    A P45 is irrelevant to anyone else once you are out of the tax year to which it refers.  You may need it to check that is the income figure that HMRC have for that year though.  I still have all 50 of my P60s though next time I come across them I will be shredding them.

    So from my understanding for example a P45 that was issued after the 6th April 2023 (New Tax Year), then that P45 is still valid for that 2023 year and becomes invalid when Jan 1st 2024 new year starts?

    The tax year runs from 6 April to the following 5 April, not a calendar year.

    Personally I would keep the one from 2022 for the moment.

    And until you have checked your forecast how do you know it will be worthwhile filling any gaps?

    Most people focus on ensuring they have the most State Pension they can get (barring scenarios where you can pay hundreds of pounds to only add pennies per week).  Not filling missing years just for the sake of it!
    where do I go to fill in the National Insurance Contribution Gaps


  • badmemory
    badmemory Posts: 9,089 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    badmemory said:
    It isn't about inflation.  Current Basic state pension is £156, current new state pension is £203.  So almost £50 difference & getting bigger every year.
    Whilst that is true, it isn't the whole story, as many people under the old scheme will have an additional sum from being contracted in, and could be getting considerably more state pension (in some cases over £300) than those under the new rules will ever be able to get. 

    Yes, I am one of those lucky ones, but only done because I deferred for over 5 years.  I tend to mention the lower amount because people often forget about them & they are mostly over 70 & often struggling.  Also often because they won't claim pension credit.
  • bery_451
    bery_451 Posts: 1,879 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    bery_451 said:
    badmemory said:
    A P45 is irrelevant to anyone else once you are out of the tax year to which it refers.  You may need it to check that is the income figure that HMRC have for that year though.  I still have all 50 of my P60s though next time I come across them I will be shredding them.

    So from my understanding for example a P45 that was issued after the 6th April 2023 (New Tax Year), then that P45 is still valid for that 2023 year and becomes invalid when Jan 1st 2024 new year starts?

    The tax year runs from 6 April to the following 5 April, not a calendar year.

    Personally I would keep the one from 2022 for the moment.

    And until you have checked your forecast how do you know it will be worthwhile filling any gaps?

    Most people focus on ensuring they have the most State Pension they can get (barring scenarios where you can pay hundreds of pounds to only add pennies per week).  Not filling missing years just for the sake of it!
    where do I go to fill in the National Insurance Contribution Gaps


    Okay to clarify for example a P45 issued after the 6th April 2022 is still valid until this tax year ends on the 5th April 2023 and after this the P45 can be discarded? 
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