N.I Contributions

Merlin5 · 11 Feb 2018 at 20:53

Energize said:
No, national insurance is just a form of income tax, you pay national insurance until you are retirement age regardless of how many years you've paid in.

Ok, I read an article with a question:
"As I have already contributed more than the required 30 years do I need to have NICs deducted from my wages for the next 12 years?"

The answer to that was "I passed on your question to HM Revenue & Customs who say the short answer is 'yes' because National Insurance contributions are intended to fund other state benefits as well as the state pension."

Then why haven't they made my arrears compulsory instead of as voluntary contributions? I've had no letter from HMRC saying I must pay anything. Perhaps it's different rules for self employed?

Here's screenshots of mine showing voluntary contributions.

Vern1961 · 11 Feb 2018 at 23:03

I'm thinking or retiring either later this year (57) or middle of next year (58) on my work pension but will have paid between 41 and 42 years NI contributions at that point. Not going to see my state pension until 67 or 68 but hopefully that's enough stamps on the card when the time comes.

AFAIK you don't pay NI on an occupational pension, only income tax.

banja · 12 Feb 2018 at 04:35

Checked my account and I have 3 years where I have not paid enough. But there appears to be no option or way to pay these shortfalls off.

KingOfTheDaves · 12 Feb 2018 at 08:08

If you have missing years, don't buy missing pre 2016 years. They changed the rules with the introduction of the single state pension, and now buying pre 2016 years has no effect on the amount of state pension you get.

wolfie138 · 12 Feb 2018 at 09:05

SexyGreyFox said:
I think it's unfair that I paid full stamp quite a few years ago but I still have to pay until I retire.

conts aren't JUST for your pension.

Skiddley · 12 Feb 2018 at 10:08

SexyGreyFox said:
You never stop paying up until you retire or die.

I never said you did, just that you would know when you could (retire), without it impacting one's state pension. Afterall, that was the OP's question.

SexyGreyFox · 12 Feb 2018 at 17:55

wolfie138 said:
conts aren't JUST for your pension.

That was established quite a few posts ago - keep up.

Destination · 12 Feb 2018 at 20:54

KingOfTheDaves said:
If you have missing years, don't buy missing pre 2016 years. They changed the rules with the introduction of the single state pension, and now buying pre 2016 years has no effect on the amount of state pension you get.

Are you sure?

KingOfTheDaves · 12 Feb 2018 at 22:52

Destination said:
Are you sure?

Well it's not quite as simple as my blanket statement (it never is).

But in the simplest terms, the old basic state pension was £109 or whatever and you had the state second pension on top.

The new single pension is £159.

So say if under the old system you had maxed out the basic SP (so over £109) but you have missing years so you don't quite get the new full £159. Any pre 2016 years you buy won't increase you SP, no matter what crap the DWP website states.

If you are in this situation the only way to increase your SP is to buy post 2016 years. The only people who will benefit from buying pre 2016 years are those who didn't have the full basic in 2016.