New State Pension starting amount and full record of qualifying years- trial service

SnowMan

woolly_wombat wrote: »

I have sent back a reply pointing out that they have not responded to my original enquiry re whether it is possible to pay voluntary National Insurance contributions for the current tax year via Direct Debit. I have reiterated that it is not in my interest to pay for past gaps in my National Insurance record as I have more than 35 years of contributions and have previously been contracted out.

Interesting article on the Daily Mail website today

http://www.dailymail.co.uk/money/pensions/article-3535618/STEVE-WEBB-Buying-ups-paying-missing-NI-boost-state-pension.html

Surprising that they haven't told you about this website that is supposed to be coming available in the Autumn to answer what if questions about the affect of paying additional contributions for particular years (I assume that is some sort of extension to the online system this thread is about).

If you've already got 35 Qualifying Years to 5th April 2016 then of course buying missing pre April 2016 years is wasted money.

greenglide

This bit is crucial:-

The delivery date for this website keeps slipping but the Pensions Minister Baroness Altmann recently told the Work and Pensions Select Committee that she expected the website to be available in the Autumn.

If it is slipping already they may not have awarded the contract yet or decided whether HMRC or DWP will be doing it. Add on the decisions around what information information they will give, all the possible scenarios and putting in place people to answer queries and mechanisms for people to hand over money and it will be a long, long way to go.

Dont hold your breath!

SnowMan

greenglide wrote: »

This bit is crucial:-


If it is slipping already they may not have awarded the contract yet or decided whether HMRC or DWP will be doing it. Add on the decisions around what information information they will give, all the possible scenarios and putting in place people to answer queries and mechanisms for people to hand over money and it will be a long, long way to go.

Dont hold your breath!

I've created a spreadsheet that probably does everything their scenario checker will do, which should be enough for people to work out whether it is possible or worth buying pre April 2016 years (and how that decision might vary depending on how many post April 2016 years they get)

I'll probably post it up once the 2015/2016 year get incorporated into the online system.

greenglide

Have you offered it to DWP / HMRC yet?

It could be a nice little earner and probably better than what they will come up with!

mgdavid

greenglide wrote: »

Have you offered it to DWP / HMRC yet?

It could be a nice little earner and probably better than what they will come up with!

Get it coded up as an Apple/Android app and early retirement will beckon :beer:

greenglide

Get it coded up as an Apple/Android app and early retirement will beckon

Dont be silly!;) It should be done properly, not on a phone / tablet / Apple thing

woolly_wombat

Goldiegirl wrote: »

I'll be interested to find out what response you get.


I think we are in similar circumstances. I've also got 38 years contributions, with quite a lot of contracted out years.


I want to boost my pension to the full single tier sum, so, now the nSP has started, I'd like to pay voluntary NIC's.


I'd be happy to pay by DD, or I'd be equally happy to pay a lump sum.


I'm holding fire for a while, to allow them time to get used to the nSP..... sounds like they are not quite there yet!

I finally managed to speak to a helpful lady on the NI enquiry line number given here:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

She wasn't clued up on when it's a good idea to pay voluntary Class 3 NICs going forward vs filling in past gaps, and it sounds as if that won't happen until at least the Autumn, but once I'd explained that I only wanted to pay from the start of this tax year she was able to help me.

I was told to complete form CA5603 and put the start date of the current tax year (06/04/2016) in box 9 to pay going forward on an ongoing basis, either by quarterly bill or DD, until I cancel the arrangement. Box 10 does not need to be completed unless you want to pay for past partly-paid years (no!) - that was where I needed clarification.

CA5603 form here:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513609/CA5603.pdf

Incidentally she also checked that I wasn't self-employed, which impressed me.

Goldiegirl

woolly_wombat wrote: »

I finally managed to speak to a helpful lady on the NI enquiry line number given here:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

She wasn't clued up on when it's a good idea to pay voluntary Class 3 NICs going forward vs filling in past gaps, and it sounds as if that won't happen until at least the Autumn, but once I'd explained that I only wanted to pay from the start of this tax year she was able to help me.

I was told to complete form CA5603 and put the start date of the current tax year (06/04/2016) in box 9 to pay going forward on an ongoing basis, either by quarterly bill or DD, until I cancel the arrangement. Box 10 does not need to be completed unless you want to pay for past partly-paid years (no!) - that was where I needed clarification.

CA5603 form here:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513609/CA5603.pdf

Incidentally she also checked that I wasn't self-employed, which impressed me.

Thank you - it all seems fairly straightforward!

gadgetmind

woolly_wombat wrote: »

She wasn't clued up on when it's a good idea to pay voluntary Class 3 NICs going forward vs filling in past gaps

I suspect this is a combination of 1) her maybe not knowing, 2) orders from on high to feign ignorance.

It really does depend on the exact detail of the calcs under both systems.

ericonabike

I posted this in this thread in January:

"I am 59 and took early retirement from public sector in 2011 so delighted to find I have 40 years full NI contributions, even though I don't really understand why. On my current record I will be due £121.24 a week, but it appears I can buy added years any time between now and 2022, my official retirement year, which would bring me up to max. And so it seems I have not lost out by being contracted out?"

I have just gone back in to the beta check your pension site, to find that my new pension forecast is £149.58, an increase of almost £30 pw! Very pleased, but I have no idea why. This seems to lessen, if not eliminate, the need to buy added years. But anyone have any idea why the two forecasts should be so different?