Paying Voluntary Class 3 NI Contributions

SeeMe

All updated now and thats my last payment needed.

Munzee

I started receiving my State Pension last July. I paid  2018/19 (the last year available to me) in January, NI record updated 7 Feb. Does anyone know how long it takes to filter through to DWP as I have not yet got the increase in pension payments.

Joey_Soap

I just want to feed back my experience today of paying voluntary NIC for 19/20 tax year. I got a letter from HMRC inviting me to pay £159.00 for the year. There's a procedure to follow that invloves making a reference number including your NIC number, "1C" (for some reason), your name and initials. Everything went well, except guess what? The reference number I generated as per the letter is too long for the maximum number of characters you are allowed to submit electronically via the banking system. Oh well, I have a proof of submittal. I will check on line at government gateway account in a few weeks to make sure it's appreaerd as a credit for last year.

JS.

RG2015

Mine is 18 digits and was fine in my NatWest account payee reference field. I am surprised that they got you to work it out as I had to phone them for a reference number. There is a previous thread on this which I will look up and then post a link.

You may need to phone them up in a few days to get them to allocate the payment to the correct year.

https://forums.moneysavingexpert.com/discussion/5663729/voluntary-class-3-ni-contributions-how-to-pay

t0rt0ise

Is there a way to hurry them up into telling me how much NI I can pay for the year just ended? I really want to pay it before applying for the state pension which I can do in a few weeks.

Joey_Soap

RG2015 said:

Mine is 18 digits and was fine in my NatWest account payee reference field. I am surprised that they got you to work it out as I had to phone them for a reference number. There is a previous thread on this which I will look up and then post a link.

You may need to phone them up in a few days to get them to allocate the payment to the correct year.

https://forums.moneysavingexpert.com/discussion/5663729/voluntary-class-3-ni-contributions-how-to-pay

Thanks, the reference procedure was in the letter, I guess the same letter went to many people, just names and addresses different. The letter was sent to me specifically referencing 19/20 tax year so they should sort it out, but yes, I check everything HMRC do/don't do. I don't trust them.
JS

bigfer

My wife (58yo) retired from full time employment last year and we are now wishing to make voluntary NI contributions to ensure she will be eligible for the maximum state pension. She must have been contracted out through her works pension as according to HMRC pension statement, she has 37 years of full contributions, an estimate of £157.93pw state pension at 67yo and 4 more years to contribute to obtain the maximum £175.20pw.

I have read the Royal London guide to topping up your state pension (2018/19) and believe she can make the necessary contributions using form HMRC CA5603 for the next / future 4 years.

Given the possible pushback from the Gov to squeeze state pensions (possible scrapping triple lock etc) would it seem likely that the paying of voluntary NI contributions to maximise state pension is withdrawn? If so should I (or can I) pay a single lump sum now to avoid missing put and/or reduce forgetting to do this at a later date. 

I appreciate that there is no financial gain by parting with circ £3182 now, but given the interest rates I cannot think we will lose a great deal. On a more morbid note, it would be one less thing for the wife to do should I checkout before her. She struggles to remember to put the bins out.

I know I could ring HMRC, but they advised me in an email, given the current covid situation, they are only taking calls from people within 6 months of state pension age, so I'd rather not bother them at the moment.

Sorry if this topic has already been discussed. Any thoughts / comments gratefully received as always.

molerat

I very much doubt class 3 will be withdrawn, voluntary class 2 on the other hand seems a prime target for the chop.  You cannot pay in advance, only cash payment for past years or by DD going forward.

bigfer

Is there any risk that setting up a DD going forward and paying for future years would not result in an increase in SP? I seem to remember some posts suggesting they had paid extra but not received and improvement in their forecast. Thanks.

xylophone

 She must have been contracted out through her works pension as according to HMRC pension statement, she has 37 years of full contributions, an estimate of £157.93pw state pension at 67yo and 4 more years to contribute to obtain the maximum £175.20pw.

Presumably a COPE is shown?

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-forecast-explained-a24r12y9jt41

Is there any risk that setting up a DD going forward and paying for future years would not result in an increase in SP? I seem to remember some posts suggesting they had paid extra but not received and improvement in their forecast. 

This would not be the case for your wife.

At 6/4/16, her forecast was for less than the full NSP (although she had achieved at least the full BSP because at that point she had at least 30 full years of contributions).

She would have been more than ten years short of SPA at that time.

She could improve her forecast up to a full NSP by contributing for the required number of years  from 6/4/16.