National Insurance Contributions

bobandsandra

I took voluntary redundancy from my employment in March 2005 and started self employment on 1st January 2006. When I left work I had paid 36yrs NI(55 yr old male) and have paid class 2&4 NI since I started SE, so have now have 38 contributary years. I am now 57 - 8 yrs to retirement age
My questions are:-
1. Since the government has introduced new legislation requiring only 30 years contributions to qualify for a full pension can I now stop paying NI altogether?
2. Can I claim back all the contributions I have overpaid (I have just paid my HMRC invoice for yr end Apr 2007 which includes NI & have paid class 2&4 all this year)

umami

I can't confirm but I doubt if they will return the access payment.
Here's the website www.dwp.gov.uk

Or try www.bbc.co.uk/moneybox website.I did remember reading about it but can't find the article.
May I just say you have a very early date of joining this site?

seven-day-weekend

I think you have to continue to pay contributions if you are earning enough to pay them, even if you have already paid your thirty years.

If of course you were to stop work or not earn enough, then you have more than enough for your pension.

I don't think you will get any rebate because while you were working and now with self employment, you have been earning enough to pay them.

Think this is correct.

bobandsandra

Thanks to you both. Have just this minute had a phone call from the Pensions forecast office who said the same as you(seven-day-weekend) - if you earn over a certain amount then you still have to pay it - don't know what the limit is 'til I phone the NI office on Monday.

CIS

Class 2 NI is paid by all S/Employed people unless you you have a small earnings exemption for earnings below £4635 (07/08) and (08/09) £4825.

Class 4 has no effect on your contribution record - it is in effect just a tax .

LittleVoice

And - looking ahead (!) - if you continue working beyond state retirement age and continue in self-employment, the Class 2 contributions cease as soon as you reach retirement age but, because it is calculated on your profit, Class 4 contribution is payable for the whole of the year in which you reach retirement age.