I've seen a fair few complaints against HMRC in my time working for Citizens Advice and one of the local MPs and this doesn't surprise me given how out of sync their data display systems are.
I mean obviously they've got most of the data they need from employers and self-completed tax returns, they get this from most people on time and you would have thought it would be a relatively simple matter of this data being inputed and then tax and national insurance being calculated automatically and then the tax payer informed.
I mean that's a basic part of a contract: the tax payer agrees to submit the correct data and HMRC agree to calculate the correct amount which the tax payer, as you might expect, agrees to pay.
Part of this contract offered by the HMRC is keeping track of National Insurance contributions which go towards the good old state pension.
But I checked my NI contributions record recently and nothing quite adds up!
If I look at my record I can see the year on year breakdown, and if I count the total of full years up I get to 25 full years.
This means I should have another 10 years of full contributions to make until I get to the maximum amount of 35 years worth contributions.
But then I also get this....
This format of display is telling me I have to make another 12 years of contributions...
Based on the fact that I have to divide £147.05 by 23 to get £6.39 which then * by 35 = £223 which is the closet to the max I could get.
Hence the system is showing me I have only made contributions of 23 years, but elsewhere it tells me i've made contributions of 25 years.
Contracted Out...?
I know that some of those years could have been 'contracted out', but if this is the case why are they showing up as 'full years' on the system in any form of display.
It's just raggedy as hell...
And then what about those undecided years...
The two during Covid when I received NO government funds at all, like they haven't decided that yet...? I need to follow up on that, I know my income was way down, but I sure as hell would have earned at least £7K a year for one of those years, the minimum you need to earn to contribute during those years!
And then I can't believe they can't tell me my accounting situation for the last tax year already. I submitted that data a full FIVE MONTHS ago, and still nothing.
HMRC could do better!
It's a terrible state of affairs, and it's a warning to everyone to be ahead of the game when it comes to challenging stuff.... they are so slow, so if you are gonna challenge give yourself AT LEAST 6 months, ideally 12 months to chase up this faltering behemoth.
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I generally trust them to get things right. I've had a couple of refunds and hope I get what I need when I retire. I've got the private pension anyway.
My other half got a nice refund recently and I was happy I could calculate what she had overpaid to deserve it and they matched up. They need to make it simple to do that.
I don't trust them, I had to seriously hassle them earlier this year as they held on to chunky rebate for almost a year.
Had to appeal (which got ignored) and then escalate it for them to do something. Then the apology letters started along with the doubloons.
Do you have to do your own tax return? I rely on my employer to sort it all out.
I was registered for self-assessment. Now I am forced to be a permanent member of staff without benefits, without holiday pay or any of the other perks, have to pay employees and employees NI... don't get me started.
It won't be for long, our fantastic government have killed contracting.
They do mostly get it right, but it's a behemoth to get through when they get it wrong, which does happen! And you have be patient, it's fine a long as you don't need the money in the next 12 months!
Mistakes really hurt small businesses which need the cash flow, but that's not NI it's another department!
Hmm, mine's already at max.., I didn't think it would be with all my contracting years. Is it 35 now?.. I have 43.
You've overpaid mate, you don't get that back either!
It's not like I have a choice!
As easy as it sounds, these is not easy. Thanks for your effort and thanks for sharing.
Your experience with HMRC's data discrepancies is alarming, to say the least. The inconsistencies in your National Insurance contributions record are staggering, and it's unacceptable that you're having to chase them down.
As someone who's worked with Citizens Advice and a local MP, your insight into HMRC's inner workings is invaluable. Your warning to others to stay on top of their records and challenge any discrepancies is well-timed and crucial.
Hey cheers one has to watch out for this sort of thing!
Yeah!
One really has too!