Buying NIC Years

[Starkraving]

Hello

I have 3 years which do not count towards my state pension because I didn't pay enough NICs in those years.

I'm going to buy those years. Can my limited company pay these on my behalf?

[Olly]

I think I might have misunderstood something here.
I receive 6K a year salary is that not going to be enough for a qualifying pension year?
Sorry to hijack - but related I think

[Ruprect]

Hello

I have 3 years which do not count towards my state pension because I didn't pay enough NICs in those years.

I'm going to buy those years. Can my limited company pay these on my behalf?

IANAA but I can't think of any reason why it could

[TykeMerc]

IANAA but I can't think of any reason why it could

I agree, NIC years are personal and not business costs, I don't see how your accountant or HMRC would ever allow it.

[Starkraving]

I think I might have misunderstood something here.
I receive 6K a year salary is that not going to be enough for a qualifying pension year?
Sorry to hijack - but related I think

It's all explained here:

http://www.moneysavingexpert.com/reclaim/state-pension

[Little'Old Me]

I think I might have misunderstood something here.
I receive 6K a year salary is that not going to be enough for a qualifying pension year?
Sorry to hijack - but related I think

Yes it should be. If you are worried you can use this link to get a forecast and check if you are missing any years http://www.thepensionservice.gov.uk/...vices/home.asp

Personally I don't see the point of making up lost years, unless you will end up with less than 30 years contributions by the time you are entitled to receive it! The rules are changing so that you need to pay for less years to qualify for the same amount of money. Paying extra years than the minimum to qualify for a maximum pension entitles you to zilch........... Or as my "mother in law" says - all those years she decided to pay her own contributions instead of the old married woman's contributions made absolutely no difference to her final pension......... She could have saved herself a fortune and got the same pension.

But you need to do your own homework and make your own decisions.

Your company can pay for it, but it is treated as your personal income from the company and accounted for as your personal income not the companies expense.

[Olly]

on a little aside I "overbought" back a year

before the cheque had been cashed I called them to cancel. But couldn't cancel the whole cheque/payment instruction otherwise I would have missed deadline for one of the cheaper years.

Of course they accepted the whole amount and I had to kiss goodbye to a could couple of hundred, can't remember exactly how much !!!

We don't do refunds!!!

[Starkraving]

[QUOTE=Little'Old Me;804464]

Personally I don't see the point of making up lost years, unless you will end up with less than 30 years contributions by the time you are entitled to receive it! QUOTE]


That's exactly why I'm asking - I won't have 30 years by the time I retire......

You just need to decide when you will retire, and if you will have 30 years qualifying years by that date. If you are a few years short it might be worth buying them - especially if it's not too much (e.g. one of my missing years just needs to be topped up by £64.)

[expat]

Hello

I have 3 years which do not count towards my state pension because I didn't pay enough NICs in those years.

I'm going to buy those years. Can my limited company pay these on my behalf?

"Your" limited company can no more pay your personal bills than any other company can pay them.

It is personal NI contributions that count to your pension, so they must be paid with your money; they are nothing to do with any company, yours or otherwise. If your Ltd Co does the actual payment, it will be with your money: i.e. tax and NICs will be due on the notional gross sum that would give rise to that net sum.

Back NICs, new pair of trainers, U2 CD, tube of toothpaste ...... all the same: belongs to you, so you have to pay for them.

(PS I can only recommend 3 of those 4 purchases).

PPS: you know, I suppose, that you want to get a move on or the price goes up?

[Olly]

"For 2008-09, this is £4,680 for employees or £4,825 for the self-employed"

in case anyone was interested - these are min salaries required.

I guess many of us are employees of our Ltds

Not 100% sure now why I bought any years back - I was about 28 at the time and retirement age is 65. Two of the years were cheeeeeeap...one - the one I tried to cancel, mostly definitely was not.

Guess back then I thought I'd have no salary after age 60 or something...oh how naive.