Panic about partner's state pension - he never registered as self employed!!

missb_4

Hello, 
I am panicking about this, so if anyone has any advice whatsoever, I'd be extremely grateful!
I have checked my partner's state pension forecast on the gov.uk website, and it has a list of gaps in his NI record going back years. Our accountant says it is because he never registered as self-employed. He's been filing tax returns though. He has now filled in a CWF1, but this means he will only get about half the state pension when he retires (he can claim state pension in 2033). He does not have a private pension. I do not know where to turn with this issue - please can anyone advise? He needs to pay around £800 for each year which is impossible with our wages, and we don't have enough savings. 
I think I'm going to start by asking the accountant why he never raised this as an issue - surely it would have been flagged on the tax returns?
Any help whatsoever would be gratefully received!!!

FlorayG

Was he paying NI contributions as well as tax while self employed?

QrizB

Your partner seems to be in the same position as "David Peckham" is, in this thread:

https://forums.moneysavingexpert.com/discussion/6598298/filling-gaps-in-national-insurance-to-boost-state-pension

If he hasn't registered as self employed, he won't have been asked to pay Class 2 national insurance. Without paying Class 2, he won't have qualified for state pension accruals in those years.

missb_4 said:

He needs to pay around £800 for each year which is impossible with our wages, and we don't have enough savings.

Yes, if he's not eligible to pay Class 2, his only option is Class 3. Class 3 contributions for some years are currently £824 but will be rising to more than £900 from the 6th of April.

How long will it be until your partner reaches state pension age?

missb_4

FlorayG said:

Was he paying NI contributions as well as tax while self employed?

I don't think so as it's come up saying he won't get a pension. His accountant didn't realise, so I'm presuming it doesn't flag up on a tax return otherwise I think the accountant would have noticed. I don't understand how this has happened. 

missb_4

QrizB said:

Your partner seems to be in the same position as "David Peckham" is, in this thread:

https://forums.moneysavingexpert.com/discussion/6598298/filling-gaps-in-national-insurance-to-boost-state-pension

If he hasn't registered as self employed, he won't have been asked to pay Class 2 national insurance. Without paying Class 2, he won't have qualified for state pension accruals in those years.

missb_4 said:

He needs to pay around £800 for each year which is impossible with our wages, and we don't have enough savings.

Yes, if he's not eligible to pay Class 2, his only option is Class 3. Class 3 contributions for some years are currently £824 but will be rising to more than £900 from the 6th of April.

How long will it be until your partner reaches state pension age?

Thanks for this - I'll take a look at that thread. Can he pay Class 2 NI payments which are backdated? I don't understand the difference between Class2 and 3 tbh. He reaches state pension age in 2033.

molerat

The main difference between class 2 and class 3 is price, £180 v £900 !

From reports on here he may be able to pay the past 6 years at class 2 but everything else would be class 3 but only speaking to HMRC will ascertain that. Has he got a call back booked ? Request a call back to pay voluntary National Insurance contributions - GOV.UK  Has he tried contacting HMRC ? - calling at dead on opening time is the only chance of getting through

Post up the anonymous details from his forecast and someone will make some suggestions.

Current weekly £££.pp amount up to April 2024.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account

I reckon a lot of accountants need to be checking their professional negligence policy is up to date !

missb_4

molerat said:

The main difference between class 2 and class 3 is price, £180 v £900 !

From reports on here he may be able to pay the past 6 years at class 2 but everything else would be class 3 but only speaking to HMRC will ascertain that. Has he got a call back booked ? Request a call back to pay voluntary National Insurance contributions - GOV.UK  Has he tried contacting HMRC ? - calling at dead on opening time is the only chance of getting through

Post up the anonymous details from his forecast and someone will make some suggestions.

Current weekly £££.pp amount up to April 2024.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account

I reckon a lot of accountants need to be checking their professional negligence policy is up to date !

Thanks so much for this - I'll put this info on now. But what does this mean: Current weekly £££.pp amount up to April 2024. What is weekly £££.pp? I've requested a call back - he's tried calling HMRC first thing in the morning, but he needs to leave for work at 8.30am so he's always still on hold at that time. 

molerat

The amount his forecast shows he already has at April 2024, the first amount under the big green box.

missb_4

Current weekly £££.pp amount up to April 2024: Estimate based on your NI record up to 5 April 2024 £76.41 a week
Number of full NI years 15-16 and earlier: None (but do I need to go back before April 2006?)
Number of full NI years 16-17 and later: None 
Tax year you reach state retirement: 2033-34 (July 2033)
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account - no it doesn't mention COPE amount on the page 

missb_4

molerat said:

The amount his forecast shows he already has at April 2024, the first amount under the big green box.

Hi - I've found the info you listed, let me know if it's not the right info or you need something else?
Many thanks for this. It's a minefield! I wish our accountant had mentioned this! My partner used to be PAYE at one point - does the £76.41/week figure reflect this PAYE work? Seeing as it doesn't seem he has ever been recorded as being self-employed?

molerat

It is the total number of years held right back to day 1 but that does not really matter now as from the information provided his situation is pretty dire, he needs another 23 years to reach the full pension and it is going to cost a lot to get out of the situation. The £76.41 will be from that earlier employment, maybe 8 or so years. If he has no other pension and no savings then relying on pension credit may be his only available option but eligibility to that may come down to your situation if you are living together. https://www.gov.uk/pension-credit/eligibility