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Gap in National Insurance Contributions



Box of Frogs

Zamoras Left Boot
Oct 8, 2003
4,751
Right here, right now
My wife got a letter last week advising her that there is a gap in her NICs for the 2010-11 tax year.

Now, she already has 26 qualifying years of NICs towards her state pension. They have said she can pay £614.55 to make up the gap. This seems a staggering amount.

I know she doesn't have to pay it but my question is, if she doesn't pay it or doesn't work another four years before she retires, will she simply get 26/30 (87%) of the state pension or is there some other calculation that I don't know about?
 




HovaGirl

I'll try a breakfast pie
Jul 16, 2009
3,139
West Hove
My wife got a letter last week advising her that there is a gap in her NICs for the 2010-11 tax year.

Now, she already has 26 qualifying years of NICs towards her state pension. They have said she can pay £614.55 to make up the gap. This seems a staggering amount.

I know she doesn't have to pay it but my question is, if she doesn't pay it or doesn't work another four years before she retires, will she simply get 26/30 (87%) of the state pension or is there some other calculation that I don't know about?

I think you need 30 years' contributions before you qualify for the whole state pension, so it's something to think about.
 


Raleigh Chopper

New member
Sep 1, 2011
12,054
Plymouth
I had a massive gap in my contributions, i cannot remember how, but the tax people paid it all back, I am tired and still on a high from the golf, but when I remember I will get back to you so keep an eye on your thread. It was not a tax fault, as I was a house husband for many years so did not contribute at all, sorry I cannot be more help at the moment.
 




Mo Gosfield

Well-known member
Aug 11, 2010
6,352
I could be wrong but I think it is 30 qualifying years for women and 37 for men, for full state pension entitlement.
 












Super Steve Earle

Well-known member
Feb 23, 2009
8,874
North of Brighton
Check the letter carefully. Does the letter say she doesn't have to pay because the dates have an asterisk (*) by the side? This might be if she had children of child benefit age to care for?
 


smudge

Up the Albion!
Jul 8, 2003
7,374
On the ocean wave
I've got 7 bloody years to catch up on, bugger; I paid for 26 years but haven't kept up the payments since working for a yank company.
 








Box of Frogs

Zamoras Left Boot
Oct 8, 2003
4,751
Right here, right now
Yes it is 30 years to qualify for full pension for men and women. It looks like she will get £14 a week less pension as she only has 26 years qualifying, unless she pays the £650 to catch up. Presumably the same for the following three years too? So pay £650 to get £730 back - doesn't seem a great deal does it?!?!
 


Driver8

On the road...
NSC Patron
Jul 31, 2005
16,177
North Wales
Yes it is 30 years to qualify for full pension for men and women. It looks like she will get £14 a week less pension as she only has 26 years qualifying, unless she pays the £650 to catch up. Presumably the same for the following three years too? So pay £650 to get £730 back - doesn't seem a great deal does it?!?!

Actually it's a cracking deal. Assuming the cost is similar each year she will have paid £2,600 in exchange for £728 p.a pension. She would need a pension pot of about £20k to provide a similar pension privately.
 






Peter Grummit

Well-known member
Oct 13, 2004
6,772
Lewes
Check the letter carefully. Does the letter say she doesn't have to pay because the dates have an asterisk (*) by the side? This might be if she had children of child benefit age to care for?

Is this a general exclusion for men and women? Do you have to inform the Revenue if it applies?

PG
 




Aadam

Resident Plastic
Feb 6, 2012
1,130
I've got 7 bloody years to catch up on, bugger; I paid for 26 years but haven't kept up the payments since working for a yank company.

It's 30 years for men and women. You have 4 years to catch up on.

Driver8 -- any significance to your username? I've seen it before on another forum.
 




Raleigh Chopper

New member
Sep 1, 2011
12,054
Plymouth
I had a massive gap in my contributions, i cannot remember how, but the tax people paid it all back, I am tired and still on a high from the golf, but when I remember I will get back to you so keep an eye on your thread. It was not a tax fault, as I was a house husband for many years so did not contribute at all, sorry I cannot be more help at the moment.

Remember now, be I am no use to you im afraid.
I was a house husband for 7 years, as my wife applied for child benefit she got NI paid on top of what she was already paying. Got letters saying I was short on my payments and then found out it could have gone to me, called tax office and they took it from her and gave it to me instead, I am now up to date, sorry that this does not help you.
 


fly high

Well-known member
Aug 25, 2011
1,659
in a house
But now the NHS is being sold off you're f***ed if you're not.

actually considering the disgraceful treatment friends & family have received from the NHS best not to get sick ever but especially if you are old. I get so angry just thinking about it, might be better if some of the incompetent arseholes were privatised & don't shout cuts at me, most happened at a time when billions of extra money was being pumped into their budget.
 


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