State pension

EdInvestor

begbeer wrote: »

What I did not explain very well is the forecast is for when i retire and will be 4 years short, what i wanted to know is can i buy those 4 years now, did hear some time ago that you could

If you have a missing year over the past 10 years you can buy it now.But if you want to buy further back than that, you will have to wait until next April and also meet certain qualifications.It is definitely worth it if you can buy the missing years.

begbeer

Dear Edinvestor, many thanks for reply, but what happens next April.

EdInvestor

begbeer wrote: »

.. what happens next April.

They start processing claims for the additional 6 years.Oh and the cost of buying the missing years goes up.

jancee_2

Just a quick note - until 5 April 2009 shortfalls from 12 years ago [not 10] - tax years 1996-97 onwards can be made up. Also due to expire at this 5 April are tax years 97-98, 98-99, 99-00, 00-01 and 01-02.

EdInvestor

jancee wrote: »

Also due to expire at this 5 April are tax years 97-98, 98-99, 99-00, 00-01 and 01-02.

Could you explain this a bit more please jancee?

jancee_2

EdInvestor wrote: »

Could you explain this a bit more please jancee?

The concession - granted when HMRC didn't send out deficiency notices for these years - of being able to buy back more than the usual six years runs out this April 5.

Here:

http://www.hmrc.gov.uk/nic/class3.htm

When do I need to pay?

You must pay Class 3 contributions on time to ensure they count toward Bereavement Benefits and Basic State Pension Class 3 National Insurance contributions are normally due no later than 42 days following the end of a tax year.

You can make back payments of Class 3 National Insurance contributions for previous years, but you need to pay before the end of the sixth tax year following the one in which they were due. If you pay after six years, any payments made will not count, for benefit unless the payment is for one or more of the following tax years 1996-97 – 2001-02 when you have until:

• 5 April 2009 to pay if you reached state pension age on or after 24 October 2004
• 5 April 2010 to pay if you reached pension age before 24 October 2004

No higher rate charge will apply for the tax years 1996-97 to 2001-02 if contributions are paid within these time limits.

If you pay in the same tax year or during the one after, the rate will be the current one in force. Any payments made after that could be at a higher rate.