Pay voluntary NI contributions!?

Tom99

SeeMe wrote: »

Ok thanks.
So the first 3 years i need will at least cost the same £733 per year 16/17 17/18 18/19, and will just have to pay the cost if it has risen for the final year i need 19/20.

No not quite, 16/17 is £733.20 and 17/18 is £741 and 18/19 is £761.80.

SeeMe

Tom99 wrote: »

No not quite, 16/17 is £733.20 and 17/18 is £741 and 18/19 is £761.80.

Ok thanks.
Is that because of the yearly increase in state pension.

molerat

SeeMe wrote: »

Ok thanks.
Is that because of the yearly increase in state pension.

Not quite, the cost increases with inflation each year which is not necessarily the same as the pension increase. You have 2 years from the end of the year to purchase at the historical in year price after which they go up to the price in the year they are purchased with the exception of the 2006 - 2016 years which are held at historical prices until April 2019.

vigman

....but they don't make it easy to pay. There is information on how to setup a DD or make a one time payment via BACS BUT you have to have "the reference number on your bill" to make the one off payment.

To save people going round the houses and if they are SURE they know the year and amount to pay then ring 0300 200 3500 and use the voice system to get through to payments for NI to HMRC. They ask you to set up a voice recognition system instead of answering multiple questions in the first instance.

The person I rang at NI contributions first was excellent and told me to make sure I only pay the 16/17 year and also to claim my pension two months before my 65th birthday on 0800 731 7898 to save filling in any forms.

Hope this helps

Vigman

molerat

Cheque in the post has always been easiest for me
https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post

vigman

Just a follow up to say that the HMRC give you a reference (mine was a one off payment but started with 11 which is stated as a quarterly payment reference on their website?) to pay by BACS.

However, they state you must ring in two weeks time to state which year the payment is for as there is no way of doing this at the payment stage!

Vigman

clivep

vigman wrote: »

Just a follow up to say that the HMRC give you a reference (mine was a one off payment but started with 11 which is stated as a quarterly payment reference on their website?) to pay by BACS.

However, they state you must ring in two weeks time to state which year the payment is for as there is no way of doing this at the payment stage!

Vigman

This is why I declined the offer of a reference number to pay by BACS straight away. I asked for a bill to be sent and will pay that when it arrives. According to them the bill should arrive within 30 days of request.

amandajc

In addition, if you do pay Vol contributions I would remember to check your account to see that they have been added when the record for the relevant TY becomes available. I was reminded to do this by the thread and discovered that although my £733.20 for 16/17 had been credited to my account, the NIs hadn't.

amandajc

vigman wrote: »

However, they state you must ring in two weeks time to state which year the payment is for as there is no way of doing this at the payment stage!

Vigman

I was told to write all the details including TY on the back of the cheque so it seem that advice on this differs.

In any case it seems to be a process that you need to keep an eye on (although well worth doing from the financial point of view if you're retired early and your record could benefit from some post 2016 contributions).

Tom99

[FONT=Verdana, sans-serif]I found the easiest way to pay a missing year was by letter/cheque, even for a year I did not need to pay for and now need a refund![/FONT]