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Exam marking and Voluntary NICs

Discussion in 'Retirement' started by khib1, Aug 9, 2019.

  1. khib1

    khib1 New commenter

    Ok you may know this already so just ignore but I'm sharing this because I would have liked this clarified myself by someone who had actually done it.
    Retired early, took TP and then have a gap till age 66. I could not achieve the full state pension. Was considering paying the £700+ per year to plug the gap. THEN I heard that if you had done exam marking or invigilation you could pay the much cheaper class 2 NICs.
    Have just spent a profitable hour on the phone to the future pensions Dept and HMRC. Pensions people confirmed how many years I need to pay then told me to ring HMRC to confirm the class 2 NICs. HMRC confirmed I was eligible and registered me as self employed and told me how much I need to pay and when they will bill me each year. Told me to ring pensions back to just check. Did that and a really helpful lady told me exactly how much each year would improve my state pension. Basically each bought year is about £4 a week more. Class 2 contributions are about £156 for the year. A few calculations suggest that if I pay those for 7 years I receive about £30 per week more. I would be better off in less than a year. Currently that is the law and of course could change. At the moment it is a no brainier. You don't have to contribute each year but each one boosts your state pension.
    The DWP future pensions Dept is 0800 731 0175.
     
  2. eljefeb90

    eljefeb90 Senior commenter

    Thanks. Several of us have done this but your summary is very clear and concise. It is a bit of a loophole as you aren't technically self-employed as an invigilator/examiner except in this aspect. Only one thing to add, you can backdate your willingness to pay Class 2 contributions from 2015 onwards when contacting HMRC. I find that they deduct NI from one of my invigilating jobs.
     
    elainerosebud likes this.
  3. applecrumblebumble

    applecrumblebumble Lead commenter

    Well done for doing this, it may be a bit of a loophole but why not. I am not going to be greedy but potentially 50 years of full NI contributions at state retirement and not the full amount, I cannot complain with a decent teachers pension and a state pension.
     
    eljefeb90 likes this.
  4. catbefriender

    catbefriender Lead commenter

    Yes it's always a no brainer going forward i.e. paying £156 from now to retirement, but back paying at £749 for incomplete years can be beneficial too, for some people with more than 10 years to pay back and less years to retirement or those already in retirement.

    Remember the HMRC has robbed us all of retirement money by moving the retirement age from 60/5 to 66/68. The worst affected being the women in their late 50s early 60s, so all these 'offers' to get us to pay even more NI contributions to get a full pension is just putting extra money in their coffers. Remember if you are retiring at 66 and a male, you have been robbed of over £8k and if you are a women, let's not bothering calculating it.:oops:

    Also do the Maths, once your state and TPS pension kick in, you will be paying tax over £12,500. You have to work out exactly how much of the extra £30 you may be getting you will actually keep.

    Hope you're a winner in the pensions lottery. In fact I hope we all are.:)
     
    Last edited: Aug 10, 2019
    eljefeb90 likes this.
  5. khib1

    khib1 New commenter

    Yes I am a woman who missed out on x number of years state pension that I might have expected to receive. I also already pay tax and would do with state pension added on. As we did in the past you work with what the law and situation is now. Currently taking the class 2 opportunity will leave me better off. I have gaps in my state pension history which tbh are government created and if there is a route to fill them then good- the government are not doing me any favours. They have already changed the goalposts several times, I am absolutely refusing to feel lucky with what I've been given- that's feudal- i worked hard and earned it within all the rules. Husband and I will be reliant on these pensions as for both of us there is no inherited wealth or property at all and as such feel it wise to maximise where we can,
     
  6. catbefriender

    catbefriender Lead commenter

    Check out posts nos 69 and 70 on
    https://community.tes.com/threads/full-state-pension.793341/page-4

    Scary stuff:eek:
     
  7. khib1

    khib1 New commenter

    Jeez some feisty comments there. It's all tricky stuff isn't it? I've spoken to both future pensions and HMRC and they were helpful including prompting me to check before doing anything.
     

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