NICO payments

greco_2

My pension pot has just had £2400 added to it as a NICO payment. In previous years it has been about £3000 and I don't understand why it has been reduced.

Also, payments are due annually on the 5th April but are invariably late (one year it was December) which can affect my investment return. Should I complain and, if so, who to?

dunstonh

In previous years it has been about £3000 and I don't understand why it has been reduced.

Lower tax relief if in this tax year? Lower income than previous years? Less earnings above the qualifying earnings factor?

the rebates are higher for the 07/08 tax year although those over 52 are getting loewr rebates (although you shouldnt really be contracted out at that age).

When you say it has just had £2400 added to it do you mean this month or do you mean late last year and you have just had your statement?

Also, payments are due annually on the 5th April but are invariably late (one year it was December) which can affect my investment return. Should I complain and, if so, who to?

Sept to Dec is the normal time for them to be paid. The tax year is 6th April to 5th April. So, its not actually late. It also doesnt always work against you. For example, last year December was a better time to invest than April so you gained in that case.

greco_2

I really don't understand how the NICO payment is calculated. There is no obvious reason for the change as I am still a higher rate taxpayer and my income has reduced a bit but not much due to chages in bonuses. The payment which has just gone in relates to the 2008/09 tax year.

I take your point about being contracted out but my point of view is that the government is not to be trusted and I would much rather see the money in my own pension pot rather than leave it in the hands of the government where they can do what they like with it. Call me old fashioned.........