What do i need to do to pay NI for pension?

textbook
textbook Posts: 771 Forumite
Part of the Furniture 500 Posts Name Dropper Combo Breaker


Received these in the post, whst do I need to do to ensure my NI payments are done for my pension?

t




 

Comments

  • JGB1955
    JGB1955 Posts: 3,806 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    What does the web link in the last line of the letter say?
    #2 Saving for Christmas 2024 - £1 a day challenge. £325 of £366
  • SiliconChip
    SiliconChip Posts: 1,775 Forumite
    1,000 Posts Third Anniversary Name Dropper
    This is the link, although I don't think it's entirely helpful to the OP.
    But isn't the first page of the letter saying that there is no NI or tax payment due?
  • Nomunnofun1
    Nomunnofun1 Posts: 550 Forumite
    500 Posts Name Dropper
    This is the link, although I don't think it's entirely helpful to the OP.
    But isn't the first page of the letter saying that there is no NI or tax payment due?
    Indeed. The op had threads on this last month. The Class 2 NIC has been calculated and the amount due has been covered by tax paid under CIS. 
  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 24 February at 12:24PM
    in your previous thread you were advised to declare your CIS deductions, and eventually did so by grossing up to the value £137.38 on your tax return. (Did you ever find the payslips to confirm that fact?)
    Doing tax return while self employed and PAYE - Page 2 — MoneySavingExpert Forum

    Deductions are normally rounded up by HMRC system so, as the letter shows, HMRC accepts (*) you as having paid £138 of tax against an actual income tax liability of zero, as your total income is below the personal allowance,

    therefore as you do not owe any income tax, the CIS money has been offset against the Class 2 that you voluntarily have chosen to pay leaving, as the letter says, zero

    The letter shows that you are being credited with having paid only £138 (a full year's Class 2 is £179.40 @ 3.45 per week) however, as you had employment in that year your P60 shows you also paid £36.67 in NI under PAYE. 

    Therefore, you should check your NI record yourself to ensure they have recorded you as having a "full" year for 23-24 as, in answer to your previous thread question, you have not paid a full year's Class 2 NI.
    But the "shortfall" may have been covered by your employee NI, hence you need to check your actual situation for 23-24 given your mix of employment and self employment in that tax year.

    Check your National Insurance record - GOV.UK

    * NOTE - please understand you are doing a SELF assessment and although HMRC has some information about your income and tax, it is not the complete picture, so the fact they say you do not owe "tax" does not necessarily mean that is correct until you yourself verify it.
  • textbook
    textbook Posts: 771 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Does this confirm paid upto date?Bookworm105 said:
    in your previous thread you were advised to declare your CIS deductions, and eventually did so by grossing up to the value £137.38 on your tax return. (Did you ever find the payslips to confirm that fact?)
    Doing tax return while self employed and PAYE - Page 2 — MoneySavingExpert Forum

    Deductions are normally rounded up by HMRC system so, as the letter shows, HMRC accepts (*) you as having paid £138 of tax against an actual income tax liability of zero, as your total income is below the personal allowance,

    therefore as you do not owe any income tax, the CIS money has been offset against the Class 2 that you voluntarily have chosen to pay leaving, as the letter says, zero

    The letter shows that you are being credited with having paid only £138 (a full year's Class 2 is £179.40 @ 3.45 per week) however, as you had employment in that year your P60 shows you also paid £36.67 in NI under PAYE. 

    Therefore, you should check your NI record yourself to ensure they have recorded you as having a "full" year for 23-24 as, in answer to your previous thread question, you have not paid a full year's Class 2 NI.
    But the "shortfall" may have been covered by your employee NI, hence you need to check your actual situation for 23-24 given your mix of employment and self employment in that tax year.

    Check your National Insurance record - GOV.UK

    * NOTE - please understand you are doing a SELF assessment and although HMRC has some information about your income and tax, it is not the complete picture, so the fact they say you do not owe "tax" does not necessarily mean that is correct until you yourself verify it.




  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 24 February at 2:22PM
    what do the "details" show?
    there should be a £ figure for "paid employment" and words that state how many weeks of self employment you have been credited with 
  • textbook
    textbook Posts: 771 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 25 February at 9:50AM


    40 weeks self employed and £36.  So all paid up?








    what do the "details" show?
    there should be a £ figure for "paid employment" and words that state how many weeks of self employment you have been credited with 

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350K Banking & Borrowing
  • 252.7K Reduce Debt & Boost Income
  • 453.1K Spending & Discounts
  • 243K Work, Benefits & Business
  • 619.9K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.