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    • Fluffyqueen34
    • By Fluffyqueen34 2nd Dec 17, 6:26 PM
    • 31Posts
    • 29Thanks
    Fluffyqueen34
    National Insurance voluntary contributions
    • #1
    • 2nd Dec 17, 6:26 PM
    National Insurance voluntary contributions 2nd Dec 17 at 6:26 PM
    Iím 57 retired from NHS.I checked my ni record.It says i have 40 years contributions.Year 16/17 no contributions.I can make up the shortfall by paying £733.20 by 5th April 2023 this may increase after 5th April 2019.My State pension forecast is £129.15.Need advise.Have reposted to this forum.
Page 1
    • BoxerfanUK
    • By BoxerfanUK 2nd Dec 17, 6:38 PM
    • 307 Posts
    • 228 Thanks
    BoxerfanUK
    • #2
    • 2nd Dec 17, 6:38 PM
    • #2
    • 2nd Dec 17, 6:38 PM
    New state pension is currently £159.55 pw so atm you are £30.40 short of maximum weekly amount. 35 qualifying years are required for full new state pension which equates to £4.56 weekly state pension for each additional qualifying year so you need to pay class 3 voluntary contributions for approx' 6.66 years starting from 2016/17 tax year until sometime in late 2022.

    I know you state you have 40 qualifying years but as ex NHS you would, I imagine, have been contracted out of SERPS thus paying reduced NI, hence why a deduction would have been made to your SP amount to reflect this. Contracting out ended in April 2016 when the new state pension came in.

    I am in a similar position and if I stop working (and paying NI) this year I too will have to pay class 3 until sometime in 2022.

    Hope this helps
    Last edited by BoxerfanUK; 02-12-2017 at 9:23 PM.
    • xylophone
    • By xylophone 2nd Dec 17, 8:06 PM
    • 23,675 Posts
    • 13,799 Thanks
    xylophone
    • #3
    • 2nd Dec 17, 8:06 PM
    • #3
    • 2nd Dec 17, 8:06 PM
    https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
    • marlot
    • By marlot 2nd Dec 17, 9:08 PM
    • 3,136 Posts
    • 2,278 Thanks
    marlot
    • #4
    • 2nd Dec 17, 9:08 PM
    • #4
    • 2nd Dec 17, 9:08 PM
    That;s a really good guide.
    • dunroving
    • By dunroving 3rd Dec 17, 12:35 PM
    • 600 Posts
    • 284 Thanks
    dunroving
    • #5
    • 3rd Dec 17, 12:35 PM
    • #5
    • 3rd Dec 17, 12:35 PM
    That is a very informative guide, but I couldn't find something I was looking for. For some odd reason I have never understood, people living and working overseas have been eligible to pay the cheaper Class 2 NICs. If someone wanted to make up for missing years when living and working overseas, would they be able to make them up with Class 2 NICs?
    • Johnnyboy11
    • By Johnnyboy11 3rd Dec 17, 4:40 PM
    • 14 Posts
    • 13 Thanks
    Johnnyboy11
    • #6
    • 3rd Dec 17, 4:40 PM
    • #6
    • 3rd Dec 17, 4:40 PM
    That is a very informative guide, but I couldn't find something I was looking for. For some odd reason I have never understood, people living and working overseas have been eligible to pay the cheaper Class 2 NICs. If someone wanted to make up for missing years when living and working overseas, would they be able to make them up with Class 2 NICs?
    Originally posted by dunroving
    Yes, an expat can pay 6 years' backdated NIC2s, costs about £750 and is a fantastic investment. There are a few rules about eligibility, but the main criteria is that you were working and paying NI in the UK immediately before you left the UK and started working overseas (immediately = no more than a weeks' gap). See HMRC NI38, and form CF83 at the back of it. I did this, with little effort.
    • dunroving
    • By dunroving 3rd Dec 17, 5:12 PM
    • 600 Posts
    • 284 Thanks
    dunroving
    • #7
    • 3rd Dec 17, 5:12 PM
    • #7
    • 3rd Dec 17, 5:12 PM
    Yes, an expat can pay 6 years' backdated NIC2s, costs about £750 and is a fantastic investment. There are a few rules about eligibility, but the main criteria is that you were working and paying NI in the UK immediately before you left the UK and started working overseas (immediately = no more than a weeks' gap). See HMRC NI38, and form CF83 at the back of it. I did this, with little effort.
    Originally posted by Johnnyboy11
    Thank you, I was actually asking on behalf of someone else, but am wondering if I should contact HMRC to ask about appealing incorrect information that was given to me in the past. I was overseas 1983-2006, working and paying NI before I left and working as soon as I came back (so qualified to pay Class 2 NICs as far as I can tell from the information you pointed me towards). Back when I left, there was no internet and I only became aware of the whole Class 2 thing in mid-2005, just before I came back.

    When I returned in 2006 I enquired about paying for missed years while overseas and was told I would have to pay Class 3, which I could barely afford at the time. If I'd been told I could pay Class 2, I'd have begged, stolen or borrowed the money.

    I've always thought it was a rather bizarrely lenient opportunity but if those are the rules I can understand why people would do it.
    • JezR
    • By JezR 3rd Dec 17, 6:33 PM
    • 1,513 Posts
    • 1,075 Thanks
    JezR
    • #8
    • 3rd Dec 17, 6:33 PM
    • #8
    • 3rd Dec 17, 6:33 PM
    Until around 2001 Class 2 and Class 3 cost almost the same.
    • dunroving
    • By dunroving 4th Dec 17, 9:42 AM
    • 600 Posts
    • 284 Thanks
    dunroving
    • #9
    • 4th Dec 17, 9:42 AM
    • #9
    • 4th Dec 17, 9:42 AM
    Being recently retired at 60, I need 6 more years at NI to earn about 65% of a full state pension. I see my options as follows:

    (1) Register as unemployed. I likely won't get JSA because I will have a £14k pension, and cash in the bank, so to speak. I'd happily take a part-time job if one came up, but I understand from family who are long-term JSA-claimers that you have to go in and sign on regularly and sit at a computer looking through the list of available jobs.

    (2) Start my own sole trader business. I already get sporadic consultancy work, which in any given year can be as low as £800 or as high as ca. £5,000. If I manage to get self-employed work but it is at a low level, am I correct in thinking I can pay Class 2 NICs?

    (3) Pay Class 3 NICs and then have the freedom to work as much or as little as I want.

    Does anyone have any experience of Option (1)?

    Sorry, meant to also ask: I have retired halfway through the tax year. I have paid over £2k in NI already this year and am assuming that is enough to get a full credit towards pension for 2017-2018. Is that correct?
    Last edited by dunroving; 04-12-2017 at 9:45 AM.
    • woolly_wombat
    • By woolly_wombat 4th Dec 17, 10:54 AM
    • 502 Posts
    • 304 Thanks
    woolly_wombat
    Being recently retired at 60, I need 6 more years at NI to earn about 65% of a full state pension. I see my options as follows:

    (1) Register as unemployed. I likely won't get JSA because I will have a £14k pension, and cash in the bank, so to speak. I'd happily take a part-time job if one came up, but I understand from family who are long-term JSA-claimers that you have to go in and sign on regularly and sit at a computer looking through the list of available jobs.
    Originally posted by dunroving
    Not something I have experience of but this link suggests that you could claim Class 1 NI credits from your local Jobcentre if you are "unemployed and looking for work, but not on Jobseekerís Allowance":

    https://www.gov.uk/national-insurance-credits/eligibility


    (2) Start my own sole trader business. I already get sporadic consultancy work, which in any given year can be as low as £800 or as high as ca. £5,000. If I manage to get self-employed work but it is at a low level, am I correct in thinking I can pay Class 2 NICs?
    I was going to point out that Class 2 NICs were being abolished on 6 April 2018 but this recently updated link states that "The government has delayed the abolition of Class 2 NICs by a year until 6 April 2019":

    https://www.gov.uk/government/publications/abolition-of-class-2-national-insurance-contributions/abolition-of-class-2-national-insurance-contributions


    (3) Pay Class 3 NICs and then have the freedom to work as much or as little as I want.
    The option that many of us have chosen.
    • dunroving
    • By dunroving 4th Dec 17, 11:05 AM
    • 600 Posts
    • 284 Thanks
    dunroving
    Not something I have experience of but this link suggests that you could claim Class 1 NI credits from your local Jobcentre if you are "unemployed and looking for work, but not on Jobseekerís Allowance":

    https://www.gov.uk/national-insurance-credits/eligibility


    I was going to point out that Class 2 NICs were being abolished on 6 April 2018 but this recently updated link states that "The government has delayed the abolition of Class 2 NICs by a year until 6 April 2019":

    https://www.gov.uk/government/publications/abolition-of-class-2-national-insurance-contributions/abolition-of-class-2-national-insurance-contributions


    The option that many of us have chosen.
    Originally posted by woolly_wombat
    Excellent advice, thank you. If the other options end up being too much hassle, I'll just go this route. It's still way batter than any annuity you can buy.
    • pip895
    • By pip895 4th Dec 17, 7:37 PM
    • 445 Posts
    • 254 Thanks
    pip895
    I am a few years short of NI contributions and like yourself do the odd bit of consultancy work.

    In 2015-2016 I earned only £800. I have to fill in a tax return because of income from property so all I did was click the box for self employed, selected cash basis put in the figures and was given the option to pay Class 2 NIC (box 36). It cost me £145.60 and I just checked, I have an extra years NIC - Result:
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