Voluntary N I Contributions for the tax year 2006-07

SpanishBlue

I wish to pay voluntary NI contributions for 2006-07. Back in April 2009, the HMRC website said….

“If you reach State Pension age on or after 6 April 2010 and want to pay voluntary Class 2 or Class 3 National Insurance contributions for the 2006-07 tax year, you can do so at the original rates up to and including the final date for payment of 5 April 2013.”

I still have a screenshot from their website saying the above. When I phoned the NI office today, I was told I would have to pay at a much higher rate (not far off double the figure quoted in their letter of December 2008) despite me telling them what their own website said back in April 2009 - that I could pay at the original rates.

Has anyone else had this problem, and if so, what was the outcome?

atush

The simple fact is, the price has now gone up. So you either pay the new price (and be glad you still can) or you don't.

Sorry, but i can't see any other outcome for you.

Good luck.

le_loup

I think you can only pay missing years up to six years ago. The price though, can and does increase.
You can interpret what you read either way, so I understand your confusion, but I think you're stuffed.

molerat

MrsM bought that year (and some others) back in 2010 as they were at the old rates but I do not remember the closing date being as far ahead as 2013 or we would have held off. Was it not a double closing date, one for cheap and another for full price ? Was the quote personal to you as there were some conditions for getting the cheap rate.

jamesd

In 2007, 2008 and 2009, including both March and June 2009, a state pension forecast had the following:

1. For each year:
a. the total amount needed to make the year count.
b. final date to pay amount shown.
c. final date to buy the year, four years later than b, perhaps.

2. Notes that the amount to pay may increase if it's paid more than two years after the end of the year.

You may be suffering from the last government changing the rule for the maximum number of years to get a full state pension and making other changes generally helpful to women. Those changes caused an increase in the cost of buying past years.

SpanishBlue

Thank to the above for their replies. I had hoped I would not need to buy this year (2006/07), but with the proposed changes (35 years required instead of 30 for a full pension) it looks like I will now have to buy it at the inflated price.

Jack_Griffin

Are you sure buying them does you any good? The old rates are protected & you may have enough SERPS/SP2 to cover the difference between the old & new ways of calculating the OAP. If you are over 50 something it is definitely worth checking what your pension statement will be.. remembering you have another 4 years to get a bit more SP2 in..

You'll get the better of...

old (with 30 yrs NI) £107 + SP2/SERPS
- you lose 1/30th of the 107 for each yr short.

new (with 35 years) £144
- you lose 1/35th of the 144 for each yr short.