HMRC Tax & National Insurance Sort Out

molerat

A P45 is only used for transferring your tax details from one employer to another within the tax year in which it is issued.  It can be useful for helping with records of income from employers and keeping it can help with tax queries later on but apart from that it has no useful purpose outside of the tax year it is issued in. So on 6th April, once the new tax year starts, it can be discarded if you so wish.

bery_451

Dazed_and_C0nfused said:

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!

Hi yes forgot to ask, what reading should I see on the Forecast to help me decide whether it be worth filling in the gaps? I ask because .Gov is displaying after April 2025 those gaps could get more expensive if not filled until then.

molerat

Post up exactly what your forecast shows as listed below, no more and no less.  Many of us will be able to explain exactly what you need to do

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 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

Bostonerimus1

bery_451 said:

Dazed_and_C0nfused said:

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?

If you have enough contributions it might not be necessary to "fill in the gaps". Get yourself a SP forecast to see how much you'll get. FYI I have a couple of gaps back in the 1990s and my forecast says that because I have 35 years of contributions I cannot increase the amount of New State Pension that I will get at age 67.

Dazed_and_C0nfused

Bostonerimus1 said:

bery_451 said:

Dazed_and_C0nfused said:

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?

If you have enough contributions it might not be necessary to "fill in the gaps". Get yourself a SP forecast to see how much you'll get. FYI I have a couple of gaps back in the 1990s and my forecast says that because I have 35 years of contributions I cannot increase the amount of New State Pension that I will get at age 67.

But for the benefit of @bery_451 that isn't because everyone needs 35 years, it is just coincidence that 35 years were needed.

It's only those starting to add NI years from 2016 who fall under the 35 years rules, everyone else is under transitional rules.

bery_451

molerat said:

Post up exactly what your forecast shows as listed below, no more and no less.  Many of us will be able to explain exactly what you need to do

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 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

Okay signed into .Gov and Forecast reads in the green highlighted text areas:

- You can get your State Pension at 68, the forecast is £203.85 a week if I contribute another 21 years of NI contributions. This means for example if I fill in 6 gaps (6 years) then that means 21 minus 6 = 15, meaning my forecast should read 15 instead of 21 after I paid to fill in those 6 gap years?

Bostonerimus1

bery_451 said:

molerat said:

Post up exactly what your forecast shows as listed below, no more and no less.  Many of us will be able to explain exactly what you need to do

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 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

Okay signed into .Gov and Forecast reads in the green highlighted text areas:

- You can get your State Pension at 68, the forecast is £203.85 a week if I contribute another 21 years of NI contributions. This means for example if I fill in 6 gaps (6 years) then that means 21 minus 6 = 15, meaning my forecast should read 15 instead of 21 after I paid to fill in those 6 gap years?

How many years do you have now?

bery_451

molerat said:

Number of pre April 2016 NI years full
Number of post April 2016 NI years full

Are the Gaps found in Pre April 2016 and Post April 2016 the same as well as the Full NI Contribution Years or are they treated differently?

molerat

bery_451 said:

molerat said:

Number of pre April 2016 NI years full
Number of post April 2016 NI years full

Are the Gaps found in Pre April 2016 and Post April 2016 the same as well as the Full NI Contribution Years or are they treated differently?

That depends on your personal situation which is why you were asked to provide that very specific list of information.

bery_451

molerat said:

bery_451 said:

molerat said:

Number of pre April 2016 NI years full
Number of post April 2016 NI years full

Are the Gaps found in Pre April 2016 and Post April 2016 the same as well as the Full NI Contribution Years or are they treated differently?

That depends on your personal situation which is why you were asked to provide that very specific list of information.

Yes all the Gaps in my NI Record that I just checked and see are Pre April 2016. Does Pre 2016 give higher or lower priority?