NI Top Up - Jersey, Channel Islands

Paul510

Hi everyone. I am trying to find out if I need to top up my NI for a missing year 2016-17. I was on low income that year, hence not paying in. My forecast, however, says that I will receive the full amount. But when I go through the HRMC apps questions, it asks about working abroad in the last 18 years. I wasn't abroad in the missing year, but now that I am in Jersey, Channel Islands, living and working here since Sept 2023, I am not sure whether this counts as 'abroad', and whether I have stopped paying the UKs NI. I am obviously paying into Jersey's version of tax and NI, called social security over here. Jersey Government enquiry office and Citizen's Advice (Jersey) have not been able to help, unfortunately, so I thought that I would throw out here. Thanks, in advance.

molerat

You need to separate the big green box at the top of the forecast, which is what you could expect to achieve by the time you reach retirement, from the text below it which tells you what you need to do to get to that point - maybe nothing or maybe pay more years.  You can then decide if it is worth paying that year - is it part filled ?

Paul510

Hi, Molerat. Thanks for your reply.
In the text below the forecast, it says,
Up to 5th April 2024, £220.01
Up to 5th April 2031, if I contribute another year, £221.20. So a small drop of £1.19. 
And HMRC are asking for £824 for the missing year. 
Am also concerned regarding this and future years of not currently paying UKs NI, but that's another issue.

molerat

If you are currently sitting at £220.01 then that is what you will get, you don't get penalised for not paying in future.  You may be entitled to pay class 2 for one more year which is £180 so could be worth it.  Social Security abroad: NI38 - GOV.UK

MallyGirl

Paul510 said:

Hi, Molerat. Thanks for your reply.
In the text below the forecast, it says,
Up to 5th April 2024, £220.01
Up to 5th April 2031, if I contribute another year, £221.20. So a small drop of £1.19. 
And HMRC are asking for £824 for the missing year. 
Am also concerned regarding this and future years of not currently paying UKs NI, but that's another issue.

an increase, not a drop. Whether it is worth paying £824 for? Rough approximation £1.19*52=£61.88 a year so payback would something like 13 years

Slinky

Not what you're asking, but don't know how long you plan to stay in Jersey, but it's worth checking how long you need to contribute before you'll qualify for at least a part Jersey pension. I checked a while back, and it was about 5 years at that point. Annoyingly I've got about 9.3% of entitlement, you need a minimum 10% to get anything. The Jersey basic pension is higher than the UK equivalent, so it's worth making sure you get to at least 10%. If I'd known, I'd have stayed a few more weeks.

Paul510

Hi Slinky.
I was told by the nice lady in the government office, when making the initial enquiry, that I would need to be here another four years before qualifying for Jersey's pension, making it five years as you've mentioned. Thanks for your input.