Shortfall in National Insurance contributions...

[Arch]

I'm starting to think, what with records going missing and all that, it would be better if we just went back to bartering turnips....

 

[NickM]

When they deliver my pension lump sum will I have to give over the back yard to it?

Or will I be able to take it along to my building society branch?

 

[Fnaar]

I had a ltter like that when I returned from a few years abroad in 1989. I was totally skint at the time (hey, not much has changed!!) so I ignored it and hoped it would go away.... I'll probably be working until at least 2026, (), so I hope I needn't worry about it any more....

 

[User482]

I had the same letter too. Given that I've been in the same job since 2003, this seemed very odd. Glad you boys have done the checking up for me - thanks!

 

[ChrisKH]

The (old) section of HMRC who dealt with NI contributions (DSS - are they still there?) were/are the most inept of government departments ever. I don't see why a reorganisation/merger (Customs and Excise and Inland Revenue have merged their functions) will make them that much more efficient. If anything the opposite is true because they are removing bodies to save costs hence, probably, the letter.

My advice is not to rely on your employer to recitfy this as they already fulfill their obligation by filing annual return form P35 and form P14's/P60's (and paying over the tax/NI). If you have a P60 for the year in question I would copy this and send it to HMRC and ask them to confirm, in writing, that sufficient contributions have been made for the year in question. That will take six months to a year if my experience is anything to go by (if they respond at all). Make sure you keep copies of correspondence and send it recorded if you can. This is your entitlement to a retirement pension they are messing about with.

It won't hurt to mention this to your employer, but I would be asking them to confirm that they did file form P35 for the year in question and actually paid over the tax. I have experienced otherwise (albeit not my own employer) and they did go belly up shortly after as they couldn't afford to pay their suppliers, the taxman being among them.

Belt and braces and a few more pieces of string are needed IMO.

 

[Maz]

...If you have a P60 for the year in question I would copy this and send it to HMRC and ask them to confirm, in writing, that sufficient contributions have been made for the year in question. That will take six months to a year if my experience is anything to go by (if they respond at all). Make sure you keep copies of correspondence and send it recorded if you can. This is your entitlement to a retirement pension they are messing about with...

Thanks for the advice, Chris. No harm in doing this. I'll do it. Cheers.

 

[yorkshiregoth]

I also got one of those a couple of months back, day after another letter came telling me to ignore the first one.

 

[PatrickPending]

me tooo - don't remember being unemployed for 2005/6 as lmy 50 week lack of national insurance contributions suggested in the letter.

Phoned them up and they said ignore it - turns out I was gainfully employed after all

 

[yello]

I have had several of these letters over years due to my somewhat, er, erratic work style. I would point out that they are NOT a demand for payment and you are totally within your rights to not make payment.

They are actually doing you a service by pointing out that you have made insufficient NI contributions in a particular year for that year to qualify towards your pension. They give you the option to complete/make that year's payments or 'buy back' (as I call it) incomplete years. I have 'bought back' 4 years so far and expect to buy back another 2 - and I am thankful for it.

The total number of qualifying years required for a full state pension has recently been reduced to 30. I now have 28 and intend to make voluntary contributions for the next 2 years to ensure a full state pension - even though it'll probably be only worth the value of a pint a week when I get to retirement age.

Of course, if they're getting it wrong then that's another matter! It probably has something to do with the computer systems being changed at the moment in line with the recent changes.... as anyone who has tried to get a pensions forecast will tell you!

 

[bobg]

The (old) section of HMRC who dealt with NI contributions (DSS - are they still there?) were/are the most inept of government departments ever. I don't see why a reorganisation/merger (Customs and Excise and Inland Revenue have merged their functions) will make them that much more efficient. If anything the opposite is true because they are removing bodies to save costs hence, probably, the letter.

Pretty much spot on Chris. I left HMCE ( retired early ) just before the merger - My wife works for the tax end of the new HMRC. They're closing most of the local offices and routing enquiries through a few call centre manned by clerical assistants at 11K a year for 41 hours a week and requred to "turn round" a call within a couple of minutes or get penalised. Tax returns in some areas still aren't processed 3 months after being received. I'm pretty damned glad I got out when we were searching ships and catching drug smugglers!!!

 

[Maz]

Well, for what it's worth, I rang HMRC this evening (Newcastle branch).

Basically, I told them my employer had told me that my letter from HMRC was sent in error, and could they (HMRC) confirm this. Yes, they said it was sent in error.

She then asked me if I had earned more than 4k in that tax year, to which I replied yes. 'Oh you should be ok then' she said (I don't know the significance of that magic number and didn't bother to ask).

She made a note of the PAYE ref. no. on my P60 and said that a letter would be sent out in due course to confirm their mistake. When asked when that would be, she said she didn't know. My guess is 6months+.