NI contributions / shortfalls confusion

Circusdancer

Hoping someone can explain my wife's recent years' contributions/shortfalls (see attached picture).
Makes absolutely no sense to me.

molerat

If you are on  a low income earning just above the LEL you will be credited with NI without paying.  This will not show on your record as credits through income do not show, just the amount paid.  As NI is a per pay packet tax you can pay some weeks but still not enough over a full year.

Circusdancer

Thanks for prompt reply, I was not aware of that.  I will do some more reading.

Circusdancer

Sorry but I've been looking further back in my wife's record and have a couple of other questions. 

How do the years 2009/2010 and 2013/2014 differ from 2022/2023?
And why does the HMRC State Pension Forecast website indicate that you can make up the shortfall by paying £824.20 for each of these years when all other comments I have read on these forums indicate that there is no benefit in paying pre-2016 shortfalls? Surely this is hugely misleading. 

molerat

For 09-10 and 13-14 no contributions were made or credits received but for 22-23 credits were received, if working likely below the LEL whereas 22-23 would have been above.

I have read on these forums indicate that there is no benefit in paying pre-2016 shortfalls?

Where have you read that ?  Pre 2016 shortfalls can make a difference but it is all down to personal circumstances.  The NI record is a simple matter of fact.  HMRC know nothing about the effect of making up those shortfalls as they are purely a tax collector, it is for other government departments to apply those contributions.

If you want to know  what her forecast actually means and her options post up the anonymous details requested and someone will talk you through it.

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

Deoending on the analysis it may be worth her topping up that missing 4 weeks from 21-22, cheap and locks in another £5.82 pw.

Circusdancer

OK, so why would there be no credits in 09-10 or 13-14 but there were in 22-23?

I'm sure I have read other comments regarding pre-2016 shortfalls not providing any benefit but that may be as you say down to personal circumstances. Certainly in my own circumstances that appears to be the case.

My wife is on track to receive the full State Pension amount in 6 years time according to her current forecast but I am trying to understand how the system works so I can monitor the situation going forward. I find the whole subject horribly complicated and I apologise if my questions appear daft.

molerat

Likely simply that she was earning below the LEL so no credits were earned.  For 22-23 that was £123 pw.  For 09-10 it was £95 pw and 13-14  £109 pw.

p00hsticks

Circusdancer said:

OK, so why would there be no credits in 09-10 or 13-14 but there were in 22-23?

Without you telling us a bit about what your wife was doing in those years, we can't really say.

 At a guess, in 09-10, 12-13 and 13-14 she was either
a) not employed at all and not claiming any benefits or
b) was employed part time but not enough in any one week to earn credits.

 Whereas in 22-23 she was employed and earning above the lower earnings limit to either get credits or actually pay NI most weeks, but not quite all; hence the shortfall and the year not being full.