Ni contributions hmrc

[Woodward23]

Can anyone explain to me simply in layman's terms as im really confused !!!. I have a gap according to hmrc where I've not paid enough national insurance towards my state pension . It says I can pay a voluntary contribution but it also says it may not change the outcome.
Im so confused!!! Im not currently working so i didn't even realise I get a state pension

It should tell you how much you owe. You need 35 years contributions to get full pension. If you still have more than 35 years left to work then you will make the contributions up naturally through work.

You can top up your contributions so that you get the full state pension. If you can afford to it's probably worth doing if you don't have another pension and you are not likely to die young. There are lots of sites with advice, try money saving expert I haven't looked but they cover most things.

I'd there a time limit in topping up? I keep seeing ads saying you have until the end of July.

You don't say how old you are-
But: in order to gets full state pension you need to have made 35 full years of contributions. If you are employed, both you employer and you will have paid national insurance contributions (you can see the NI deductions shown on your payslips).
If you are self employed you pay class 2 (usually monthly) and class 4 contributions (worked out when you do your tax return).
You can also get credits for years looking after children (when claiming child benefit).

You can check your NI record here:

www.gov.uk/check-national-insurance-record

The Martin Lewis website is very helpful:

www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

If you need to get in touch with hmrc, you can phone them. Be prepared for a loooong wait on hold, be ready with your NI number and details of your employment history- I have found them very helpful and friendly when sorting out mine and DH's pension entitlements.

Yes July 31st

Is that for everyone? Or people coming to the end of their 35 years?

What happens if you haven't topped up fully by then?

I'm 42 this year, if it makes any difference.

It's worth having a look to see if you have part years that you can top up.
You still have 24 years or so to contribute to youe 35 year requirement though.

It isn’t 35 years for everyone. I wish people would stop stating that. From 2016, it became 35 years, but for most of us who startled paying NI contributions before that, it’s a different number.

What's your number?

set up a government gateway log in and you can see exactly how many years you have paid and how much it would cost to pay any back years. Depending on your age now and current employment status it may not be worth paying any back years. I lived overseas for 25 years and paid voluntary contributions, but will stop next year as I will have enough qualifying years for a full state pension.

Totally agree.

Are you required to pay more or less than 35 years?

I started paying in the 80s and it still says 35 years on mine

Then you lose the opportunity and will have to work longer to get to 35 years ( or whatever your account tells you you need)

If you prefer, phone the Future Pensions people (part of HMRC). They will explain it to you. There are so many variables.

If you need to pay NI for past yeatmrs, you can only go back so many years. I didn't make enough contributions way back in 1979 - it's too late now.

You don't stop at the ' golden' number of 35 years you continue to pay until you leave work. So for example a person has reached their retirement age but has chosen to continue to work ( retirement is not obligatory , you can continue ) so he / she will continue as before , pay tax & NI.
It is also worth knowing you are not building up your own state pension ' pot ', what you pay in is paying those on state pension now , in return when you retire those working then will be paying yours.
The downside of that is it is not inherited , do can't leave it in your will like a private pension as you don't technically ' own ' it , its a state pension benefit.

I started contributions in the 70s and it still says 35 years on mine 🤷

If you receive child benefit you may have been given some NI credits through that.

Could I ask a question . I've only just found out I can do this. And have lived abroad for many years. Do you have to start paying voluntary Contributions as soon as you leave, I'm hoping I can start now and atleast back date 6 years

You can back date, I'm not sure for how long. I backdated mine for 5 years this spring. You will have to phone them- be prepared to sit on hold for ages! Have all your information ready: NI number, tax details, former employer as much as you can find.