Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

nics- have been asked to pay but am sahm what do i do?

9 replies

blueberrysorbet · 09/12/2010 19:13

I have had a letter from hmrc saying that i must pay my nics for a year or I will lose my full pension benefit. I am a sahm and i don;t claim any benefits. do i have to pay, do other mums have this request, i have asked a few friends and they have no idea what it is- and i have looked on the hmrc website and it just confused me more. if anyone can help? thanks!

OP posts:

AnnoyingOrange · 09/12/2010 19:16

you do not need to pay them if you get child benefit in your name. you will be given credits

AnnoyingOrange · 09/12/2010 19:17

see here www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_183802

purpleturtle · 09/12/2010 19:20

Is there anything at all about Home Responsibilities Protection - HRP - on the letter? If you claim Child Benefit, it should be automatically applied. However, I did once have to ring them to get HRP applied to one year's contributions because for some reason it had been overlooked.

Sam100 · 09/12/2010 19:24

Just call the office that the letter came from and they should be able to sort out for you. It sounds like they have not got the HRP on your account. Do you get the child benefit paid to your partner? Or have you changed name since having children? Possible accounts have become mismatched.

I have been a SAHM in the past for a number of tax years and did not ever get a letter like the one you describe.

Original poster

blueberrysorbet · 09/12/2010 19:30

i go back and forth to see my dh abroad and it means we don;t qualify for child benefit so i don't claim it. the bill is for more than a years child benefit anyway! so confused really

OP posts:

purpleturtle · 09/12/2010 19:39

You don't actually have to pay it. You are obviously in unusual circumstances, in that most SAHMs are covered by HRP because of Child Benefit.

We have a letter kicking around the house that they sent DH because he didn't make contributions while he was training a couple of years ago. He can choose to make up the missing contributions, as this will count as another year towards his pension, but he doesn't have to do it. His pension will be a little bit less if he doesn't get the full 39 years (or whatever it is) in.

purpleturtle · 09/12/2010 19:41

Sorry - should have been a bit clearer I think.

Although you don't have to pay it, if you could afford to, it may well be worth doing so, as it will count towards your pension.

This is all based on the assumption that you have a letter about 'optional contributions' or something like that.

Trublatmill · 10/12/2010 01:41

To get your full state pension, you used to have had paid 39 years of NI contributions or had the equivalent in credits. This has been reduced to 30 years, so it is probably worth making the payments to ensure you get your 30 years in.

PDR · 13/12/2010 19:25

It depends...

How old are you?

Will you ever go back to work?

How many years contributions do you already have?

Have you made good pension provisions?

If you are say 25 and already have 5 years contributions and are likely to go back to work in say 5 years time I'd say don't bother. Equally if you are 40 and have a good occupational pension then again probably not worth it.

Flip