Voluntary NI contribs to state pension

TooMuchSloeGin

I know that I want to pay voluntary contributions for two years where I have not had full NI contributions. I also know how much to pay for each year from the gov.uk pensions website.


However there's no obvious way on the gov.uk website to get the ball rolling. They tell me about the gaps and the sums involved but there's no link or information as to what I have to do to actually PAY those contributions.


I am still a few years from retirement but currently not working.


Has anyone in a similar position done that and knows how to go ahead?

Blackbeard_of_Perranporth

Contact HMRC and they will tell you how much and how!

lisboa84

https://www.gov.uk/pay-voluntary-class-3-national-insurance

I found this page very useful.

TooMuchSloeGin

@Lisboa84: Thanks for that. I actually skimmed that page and its sub-pages but when they mentioned a "Reference Number" which I do not have, I stopped.

Use your reference number when making your payment. You’ll find it on your bill.For quarterly payments, your number will be 18 characters beginning with 11.
For one-off payments, your number will be 18 characters beginning with 60.

As for contacting HMRC, I've had some dreadful experiences in the past :mad: and I am extremely wary to do so. I'll do that if I really, really have to but any other method will be VASTLY preferred.

p00hsticks

TooMuchSloeGin wrote: »

As for contacting HMRC, I've had some dreadful experiences in the past :mad: and I am extremely wary to do so. I'll do that if I really, really have to but any other method will be VASTLY preferred.

Well, given that HMRC are the ones who actually process the credits, you're going to have to contact them one way or another.

The least painful way is probably to write to them (at the address given in the link mentioned above) enclosing a cheque for the correct amount, and stating clearly which years you are paying for.

In the absence of a reference number, other on this board have reported that just giving your NI nunber works just fine, althoguh there is another thread on this board, which I can't find at the moment, that has suggested a formula for working out the reference number.

TooMuchSloeGin

@p00hsticks: Yes, you're right in that I will have to deal with HMRC in the end. And I do that every year for the income tax SA. This is a straightforward web-based service and I have no problems with that. It works (though the login is always an adventure) and does the job.

Actually calling them though and trying to get somewhere is a different proposition, to put it mildly. I will try to find the thread you were talking about although I'd think that they should be able to handle a payment (say by cheque) if accompanied by full name, address, NI number and the exact details of the years concerned, perhaps even with a screenshot of their own pensions website showing those years.

I will keep the forum posted.

EDIT: I've now asked Aunt Google (thanks @p00hsticks for mentioning this thread)... probably it's this one: https://forums.moneysavingexpert.com/discussion/5663729/voluntary-class-3-ni-contributions-how-to-pay posts #11 and #17 and following.

I've skimmed it and I gotta say this seems to be another case of some HMRC boffins thinking "why make things simple and understandable if we can just as well make them fantastically complicated...!?!". I am an IT specialist so the way this famous reference number is constructed is not that hard to comprehend but it's a shame that they can't whip this whole thing into a couple web pages so that people can actually do this via a few mouse clicks. Obviously HMRC are confident that we can to do our tax income declaration online... so we certainly can do this online, can't we?

p00hsticks

TooMuchSloeGin wrote: »

Actually calling them though and trying to get somewhere is a different proposition, to put it mildly. ?

I was quite pleasantly surprised when I phoned them to both pay for a previous year and set up a DD for current and future years payments.

Although it intially took a few minutes of automation to set up voice recognition (as I hadn't done that before) I was then put straight through to a human who provided me with all the details to make a faster payment for the previous year and set up the DD for me. Very painless - although perhaps I was just lucky.

I used the number which I think is specifically for NI enquiries

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

revolver

I took early retirement aged 56 in 2013 and just didn't realise that as I was no longer paying NI, my state pension would suffer!



I've gone on the Gov UK website and I am £2,900 short; I have downloaded a direct debit form to pay this off and to pay for future contributions. However, it doesn't say anywhere how the shortfall will be deducted, ie will they just take the whole amount or will it be divided up into monthly payments and, if so, over how long a period.


Taking it all in one hit would be impossible anyway as I don't have that amount sitting in my bank account!


Does anyone know the answer to this or have experience of a similar situation?


Thanks in advance.

xylophone

I took early retirement aged 56 in 2013 and just didn't realise that as I was no longer paying NI, my state pension would suffer!

What exactly does your state pension forecast say?

When do you reach state pension age?

revolver

My pension forecast shows that if I make up the NI deficit I'll get £149.73 pw. If not, then it's £126.25 pw. I reach state pension age at 66 - August, 2023.

molerat

revolver wrote: »

My pension forecast shows that if I make up the NI deficit I'll get £149.73 pw. If not, then it's £126.25 pw. I reach state pension age at 66 - August, 2023.

If you want answers you need to state everything the statement shows, current amount, years full, COPE amount etc