Buying (self employed) years to top up pension.

mamabuddah

Just seen Martin again tonight and I think a viewer messaged the show with a similar query to mine which has prompted me to ask again…here we go…

retired on ill health in receipt of works pension circa 2000
in December 2006 decided to start as a sole trader
probably tried for about 5 years, submitted returns (didn’t make much of a profit) until HMRC decided I wasn’t to submit any more returns.

funnily enough on an HMRC course for sole traders, no one mentioned NICs.

so while “trading” I was still in receipt of my works ill health pension and paying tax via my pension.

I wasn’t aware if I could pay class 2 (I think) contributions and apparently they can be bought now  at approx £180 per year for “lost” years.

Even as a sole trader, did my works ill health pension (financially) put me out of the category, because of too much income to be eligible to buy Class 2 NICs?

I have to say I find the Gov websites confusing and I can’t even see the years when I was submitting a tax return for my “business”.

Any help in finding where to search, look or ring for help appreciated.

sueinwales

I'm 62 and retired. I have over 35 years NI credit and  Gov.uk says I will get the full pension. However, they still advise me to keep topping up for the years since I retired (3 years). Why would they do this if I am already entitled to the full pension?

molerat

sueinwales said:

I'm 62 and retired. I have over 35 years NI credit and  Gov.uk says I will get the full pension. However, they still advise me to keep topping up for the years since I retired (3 years). Why would they do this if I am already entitled to the full pension?

Where does it advise you to top up ?

Are you reading the forecast correctly and not just the big green box at the top ?

35 years does not entitle you to a full pension, that is down to individual circumstances and will need anything between around 28 to 48 years.

Or are you looking at your NI record which is a matter of fact, the year is not full and will cost £xxx.xx to fill, it is not an invitation / advice to pay.

mamabuddah

sueinwales said:

I'm 62 and retired. I have over 35 years NI credit and  Gov.uk says I will get the full pension. However, they still advise me to keep topping up for the years since I retired (3 years). Why would they do this if I am already entitled to the full pension?

Hi there. You might get more advice in a thread of your own with a different heading. 👍

molerat

mamabuddah said:

Just seen Martin again tonight and I think a viewer messaged the show with a similar query to mine which has prompted me to ask again…here we go…

retired on ill health in receipt of works pension circa 2000
in December 2006 decided to start as a sole trader
probably tried for about 5 years, submitted returns (didn’t make much of a profit) until HMRC decided I wasn’t to submit any more returns.

funnily enough on an HMRC course for sole traders, no one mentioned NICs.

so while “trading” I was still in receipt of my works ill health pension and paying tax via my pension.

I wasn’t aware if I could pay class 2 (I think) contributions and apparently they can be bought now  at approx £180 per year for “lost” years.

Even as a sole trader, did my works ill health pension (financially) put me out of the category, because of too much income to be eligible to buy Class 2 NICs?

I have to say I find the Gov websites confusing and I can’t even see the years when I was submitting a tax return for my “business”.

Any help in finding where to search, look or ring for help appreciated.

Self employed are generally able to pay class 2 contributions but there are several caveats to that eligibility for earlier years, you needed to be registered for an exception from paying class 2 to be able to pay voluntarily, and you need to contact HMRC to confirm your eligibility for particular years.  Failing that you would be able to pay class 3.  Your pension income would not bar you from either class of voluntary NIC.