We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Paying back incomplete tax years, is it worth it?

Options
I have a letter from Jan 2004 asking if i want to pay back a total of £377.95 from 2 years of incomplete tax years and hubby has one from dec 2003 asking if he wants to pay back £290.40 from one year.

We have no spare money and would have to borrow to pay it and the deadline is friday! EEKKKK!

Should we borrow and pay back or leave it but regret it in the future?

Jem x

Comments

  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    jem1276 wrote: »
    I have a letter from Jan 2004 asking if i want to pay back a total of £377.95 from 2 years of incomplete tax years and hubby has one from dec 2003 asking if he wants to pay back £290.40 from one year.

    We have no spare money and would have to borrow to pay it and the deadline is friday! EEKKKK!

    Should we borrow and pay back or leave it but regret it in the future?

    Jem x

    I assume that this is NIC ....remember that under the new rule, most people will only require 30 years contributions for a full retirement pension. If you are likely to achieve this anyway, then it is probably not worth it anyway.

    terryw
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • chappers
    chappers Posts: 2,988 Forumite
    It all depends on how close you are to retirement and as terry says if you are going to make up your 30 years contributions.
    The letter should say how much your pension is going to be based on your current shortfall.
    If you think you are not going to make up the 30 years without this payment you then need to balance up how much pension you are going to lose over the amount of time you might live after retirement against the amount you need to pay. If you are close to retirement then yes this may be your last opertunity to top up to get full pension, if you are a way away you may get another oppotunity to top up any short fall later.
  • bobby-boy_2
    bobby-boy_2 Posts: 235 Forumite
    If you have any childrem for whom you were receiving child benifit for during the shortfall years you will be credited with primary carers allowence for these years AS LONG AS it was for the complete year. Your local tax office can confirm this. This only applies to the primery name on the family allowence "book" as was.
    Debts as of 01/june/08
    [strike]Dad 15,500[/strike] [strike]11,000[/strike] [STRIKE]9000[/STRIKE]
    [strike]Friend[/strike] [STRIKE]5000[/STRIKE]
    [strike]Other 1000[/strike] 0.0
    Egg [strike]7633.14[/strike] [strike]6000@0%[/strike]:T
  • Tao81
    Tao81 Posts: 653 Forumite
    bobby-boy wrote: »
    If you have any childrem for whom you were receiving child benifit for during the shortfall years you will be credited with primary carers allowence for these years AS LONG AS it was for the complete year. Your local tax office can confirm this. This only applies to the primery name on the family allowence "book" as was.

    Not aware of primary carers allowance?:confused: Have you any suggestions on where I can educate myself regarding this...Thanks :D
    Be kinder than necessary, for everyone you meet is fighting some kind of battle. :A
  • bryanb
    bryanb Posts: 5,029 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Remember the 30 year rule doesn't start till 2010, if you're very close to pension age.You still need 40+ till then.
    This is an open forum, anyone can post and I just did !
  • bobby-boy_2
    bobby-boy_2 Posts: 235 Forumite
    Hi Tao81 you can call HMRC about the allowence. I was on income support for a while and it is a non taxable allowence so when i querried my "Stamp" being paid the benefits agency said I was not entitled so I contacted Inland Revenue as was and they explained it. The first name on the book (usually) the mother gets carers allowence until the youngest child is 16 or leaves full time education. It has to be a full tax year but it protects your pension. Just give HMRC a call and they should confirm
    Debts as of 01/june/08
    [strike]Dad 15,500[/strike] [strike]11,000[/strike] [STRIKE]9000[/STRIKE]
    [strike]Friend[/strike] [STRIKE]5000[/STRIKE]
    [strike]Other 1000[/strike] 0.0
    Egg [strike]7633.14[/strike] [strike]6000@0%[/strike]:T
This discussion has been closed.
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
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only 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.