I just got a letter from HM Revenue and customs saying that i have to pay £293 to them because i havent paid or been credited with enough National Insurance contributions to make the year 2004-2005 count towards my basic State pention! But i was in uni 2003-2005 and only worked part time for christmas at sum point 2005 so i dont understand it. Is this right? and has any other student had this letter? Why should i have to pay for not working? I was a student that year??
2006-11-26 04:52:05 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
you owe them nothing. It's an OPTION for you to pay.
If you don't pay, your state pension when you retire will be X. If you do pay, it will be X plus a little bit. They send you the letter and you decide if you think that's a good investment or not.
Work related pensions, and even most private sector pensions, are a better bet than the state one, so if you have £293 to put into a pension, put it into your works or private pension.
PS I had a stack of these over the seven years that I was a student. I never paid one of them.
2006-11-26 04:54:34 · answer #1 · answered by wild_eep 6 · 1⤊ 0⤋
As wild eep said, its an option. Paying is only really worthwhile if you are close to getting a pension but don't quite have enough years to qualify. I moved from the UK to the USA in 2001 so I will probably pay voluntary contributions when I can afford them as, otherwise, I will lose almost 20 years' worth of contributions.
Now, if you are young enough (in your early-mid twenties) to be able to earn NI credits without paying for 2004-05, you might wish to save your money. There will be enough time for you to catch up when you are working full-time permanently. If, however, you are a mature student (perhaps in your 40's or 50's) you would do well to write back and ask for a pension forecast. That will help you decide if it would be worthwhile making the voluntary contribution.
It is impossible to give concrete advice in this forum but I hope the answers you recceive will help you see things more clearly.
2006-11-26 05:03:41 · answer #2 · answered by skip 6 · 0⤊ 0⤋
I had the same thing. I was an aupair for a couple of years back in the early 90's. I was worried about this but CAB told me that it could possibly affect my state pension (I was 21 then) - so I figured that by the time I hit pension age there would be no state pension so never paid. I really wouldn't worry about it. You do not have to pay.
2006-11-26 04:56:27 · answer #3 · answered by lisaandmax 2 · 1⤊ 0⤋
As long as by the time you retire you have paid enough stamps then you will be OK... i had the same problem a few years ago, i rang them up and they told me that i didn't have to pay the short fall as long as i paid National Insurance for the next 12 years then i will be OK and it won't effect the pension that i should recieve
2006-11-26 05:03:03 · answer #4 · answered by sky 4 · 1⤊ 0⤋
I was a student for 5 years and only ceased to be one a year ago. Throughout that time I didn't get anything like that and neither did anyone I know.
Probably bogus or a mistake.
2006-11-26 04:56:04 · answer #5 · answered by Bongo 2 · 0⤊ 0⤋
they just sent me a letter saying i owe them eighteen kwid.
how much did that letter cost to send.
will there be a state pension when i retire?
not if the exchequer has anything to do with it.
2006-11-27 02:23:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
nope
2006-11-26 04:53:21 · answer #7 · answered by Jumble 4 · 0⤊ 0⤋