Your NI record for 2022/3 is not complete.....

ProDave

I am self employed.  I have a full NI record up to tax year 2021/2

Tax year 2022/3 I was still self employed, I filled in my tax return and paid my tax due, without paying much attention, then checked from time to time to check my NI record on "check your state pension" had updated.

It was still saying "Year is not full

We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything."

For some reason I went back and checked my 2022/3 tax return and noticed my encome had fallen to just below the threshold to have to pay NI. (I am winding down towards retirement)  So I amended my tax return to tick the box to pay voluntary NI, and then paid it straight away just before Chrismas.

Check your state pension is still telling me the year is incomplete.  So what do I have to do now?

This is important for me as I still need 2 more years of NI contributions to get the full state pension, and had been expecting the 2022/3 year to be one of them, and 2023/4 should then get me to a full NI record for the full amount of state pension and I can finally quit working altogether.

So why even paying voluntary NI contributions for that year is my NI record not complete?

molerat

You paid in December, it is only January.  It can take several months for the payment to be reflected in your NI record.

Dazed_and_C0nfused

ProDave said:

I am self employed.  I have a full NI record up to tax year 2021/2

Tax year 2022/3 I was still self employed, I filled in my tax return and paid my tax due, without paying much attention, then checked from time to time to check my NI record on "check your state pension" had updated.

It was still saying "Year is not full

We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything."

For some reason I went back and checked my 2022/3 tax return and noticed my encome had fallen to just below the threshold to have to pay NI. (I am winding down towards retirement)  So I amended my tax return to tick the box to pay voluntary NI, and then paid it straight away just before Chrismas.

Check your state pension is still telling me the year is incomplete.  So what do I have to do now?

This is important for me as I still need 2 more years of NI contributions to get the full state pension, and had been expecting the 2022/3 year to be one of them, and 2023/4 should then get me to a full NI record for the full amount of state pension and I can finally quit working altogether.

So why even paying voluntary NI contributions for that year is my NI record not complete?

The due date for payment of voluntary Class 2 NI hasn't been reached yet so I doubt very much HMRC are taking any action to reconcile things just yet.

Once 31 January has come and gone I suspect things will change, albeit probably not at lightning speed.

ProDave

Thanks. So my mistake is expecting something done on line to actually be fast at reflecting what you have done.

Dazed_and_C0nfused

ProDave said:

Thanks. So my mistake is expecting something done on line to actually be fast at reflecting what you have done.

I'd say paying before you need to and expecting something to happen because you have chosen to pay early is expecting a bit much.

But maybe HMRC could allocate a member of staff to monitor your account in future to check when you pay your Class 2 NI 😉

ProDave

Dazed_and_C0nfused said:

ProDave said:

Thanks. So my mistake is expecting something done on line to actually be fast at reflecting what you have done.

I'd say paying before you need to and expecting something to happen because you have chosen to pay early is expecting a bit much.

But maybe HMRC could allocate a member of staff to monitor your account in future to check when you pay your Class 2 NI 😉

I always fill in my tax return and pay my tax due long before the 31st January deadline.  In previous years my NI record has always updated long before 31st January, which is why when it has not this time I was asking in case there is something else that I need to do that also might have to be done before 31st January.

I am not expecting special treatment, but would have thought it was possible to build an IT system that when a payment is made it shows as such without an operator having to scrutinise every account and update things manually.

QrizB

ProDave said:

For some reason I went back and checked my 2022/3 tax return and noticed my encome had fallen to just below the threshold to have to pay NI.

Do you mean your 2022/23 profits fell below £11908 (and you didn't have to pay Class 2 contributions) or fell below £6725? Between those two values you'd be credited for a year's NI withough having to pay anything.

See the thresholds here:

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions#class-2-and-class-4-national-insurance-self-employed

ProDave

QrizB said:

ProDave said:

For some reason I went back and checked my 2022/3 tax return and noticed my encome had fallen to just below the threshold to have to pay NI.

Do you mean your 2022/23 profits fell below £11908 (and you didn't have to pay Class 2 contributions) or fell below £6725? Between those two values you'd be credited for a year's NI withough having to pay anything.

See the thresholds here:

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions#class-2-and-class-4-national-insurance-self-employed

It fell below £6725.  I had other income from property rental and pensions but that is not counted as earned income to trigger NI contributions, just income tax.  I just filled in my tax return and paid what it asked, which it turns out was just income tax, not any NI.  It was later I realised perhaps I should go back, amend my return by ticking the box to voluntarily pay class 2 NI.  But with my NI record still showing incomplete, I am wondering if that was the right thing to do and have I in fact just paid that for nothing and I should have done something else?

I went below that threshold as well during one of the Covid years and without paying any NI that year I got a full year NI credit, which is why I overlooked it this time.  Perhaps that was a special covid thing that you got the NI credit regardless?

QrizB

No, that's fine.

We're in the opposite position for 2022/23 as it's the first year that Mrs QrizB's self-employment has amounted to enough that we aren't prompted by her tax return to pay voluntary NI.

ProDave

QrizB said:

No, that's fine.

We're in the opposite position for 2022/23 as it's the first year that Mrs QrizB's self-employment has amounted to enough that we aren't prompted by her tax return to pay voluntary NI.

So you are able to confirm if your self employed profit is less than £6725, AND you pay voluntary class 2 NI, you will get a full NI credit for the year for your pension.

The same is going to apply for the 2023/4 tax year.  And if I get my NI credit for both of these, I will be up to a full state pension entitlement and can stop working and fully retire. 

QrizB

ProDave said:

QrizB said:

No, that's fine.

We're in the opposite position for 2022/23 as it's the first year that Mrs QrizB's self-employment has amounted to enough that we aren't prompted by her tax return to pay voluntary NI.

So you are able to confirm if your self employed profit is less than £6725, AND you pay voluntary class 2 NI, you will get a full NI credit for the year for your pension.

Yes, that's what we've done in previous tax years.