Is there a simple way of getting hold of what the IR believes were NI credited years from HM Revenue and Customs and is it possible that the Pensions people do not have complete returns?
We have just received a Pensions Forecast for my spouse. It shows that there was no NI contributions for several years when we believed we should have had NI credits for the year or when we made NI contributions or was between Lower Earnings Limit and Primary Threshold.
Anythings possible, try to get them to prove their case.
Subject data access request ?
P60 from employers.
Launch a complaint.
While all those are possible I wonder if it might be simpler to start with a straightforward question to NICO about the years for which you think you should have credits/qualifying years? See eg
Many thanks to the pointers.
Looking through our partnership accounts which were prepared by our accountatns I can see that for several years my wife has paid Class 4 NI contribtuions at the year end along with her income tax. For several of these years her Pensions Forecast says that she has no record of NI contribtions.
Does the fact that she has paid Class 4 NI contribuitions automatically mean that she has paid class 2 contributions as well - or is it possible to pay Class 4 (which I understand are non-benefits earning) but NOT have paid Class 2?
In our accounts no specific mention is made of Class 2 and I'm trying to decide whether to make voluntary contributions for a few missing years or whether she has in fact paid some for thos years..
Thanks.
If she earned less than a certain amount in Self Employment (was £4825) she could have asked for an exemption to Class 2 NI contributions. It would have to be applied for and renewed every few years. Class 4 contributions would still be taken at the end of the year when the SA had been processed.
Many thanks Rob.
She earned more. Her share of profit 2005/6 was around 75k and there was
25k+ paid in total tax and NIC. But in the accounts it merely mentions NIC 4 specifically. She applied for no low earnings exemptions.Does that mean her tax computations included Class 2 do you think?
Thanks.
Class 2 would not feature in accounts as they are a personal liability.
No. Class 2 NICs are as yet quite separate from the Class 4: they are paid separately and do not feature in the tax return.
If you look back through the years and/or in discussion with HMRC or your accountant this is known as the "small earnings exception (SEE)". While your wife may have applied for one years ago, I'm a bit surprised your accountant never even mentioned Class 2 to you. But then again I'm not an accountant and don't know what they would do as a matter of course.
Whatever may have happened many years ago she clearly should have paid Class 2 contributions when earning such large amounts. So there is no need to pay voluntary contributions (which are more expensive than Class
2) for recent years. She can just 'fess up to HMRC that she failed to pay. She will then have to a mixture of the current rate and the rate she would have had to pay. (There's some complicated rules about payments made more than a year late having to be made at the current Class 2 rate rather than what the rate would have been. I can't remember them. But it's still a lot cheaper than Class 2. And there's no interest.)I can't recall how many years you can go back and no longer have ready access to the consolidated legislation to check. But you might as well ask HMRC as you are going to have to be in touch with them.
HTH
Can't you find the payments for Class 2. You need to have paid them.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required