Class 3 NI - when to stop payments

BoxerfanUK

Hi All,
Due to Contracting out I've been paying Class 3 NI for the last tax year and this one.  By the end of this tax year I will only be £2.05 per week short of full state pension which I can draw from 2025 so I intend to stop payments at the end of this tax year (2020/21).  I am currently paying class 3 by monthly DD and the monthly payments this tax year vary between £61.20 and £76.50 per month.  DD goes out around the 10th of each month.
My question is; Should my last payment be March 2021 (£61.20) or April 2021 (£76.50) or do I need to go back through my bank statements and total up the payments

[Deleted User]

The last month of the tax year is March so I would assume that would be the final payment

jamesd

Payback time is a bit over seven years so the extra year looks worthwhile.

BoxerfanUK

jamesd said:

Payback time is a bit over seven years so the extra year looks worthwhile.

jamesd do you mean the £2.05 shortfall I will have to my state pension If I stop payments after this tax year?  If so, I'd worked out that it would take me 9.6 years (taking 20% tax into account) before I break even so didn't really think it was worth it for £2.05 per week but I stand to be convinced otherwise lol.

BoxerfanUK

BoxerfanUK said:

My question is; Should my last payment be March 2021 (£61.20) or April 2021 (£76.50) or do I need to go back through my bank statements and total up the payments

I found the answer, looks like DD's are taken May to April inclusive each year.  Thanks again though for the input

AlanP_2

BoxerfanUK said:

jamesd said:

Payback time is a bit over seven years so the extra year looks worthwhile.

jamesd do you mean the £2.05 shortfall I will have to my state pension If I stop payments after this tax year?  If so, I'd worked out that it would take me 9.6 years (taking 20% tax into account) before I break even so didn't really think it was worth it for £2.05 per week but I stand to be convinced otherwise lol.

Does that allow for the 2.5% minimum increase each year?

BoxerfanUK

AlanP_2 said:

BoxerfanUK said:

jamesd said:

Payback time is a bit over seven years so the extra year looks worthwhile.

jamesd do you mean the £2.05 shortfall I will have to my state pension If I stop payments after this tax year?  If so, I'd worked out that it would take me 9.6 years (taking 20% tax into account) before I break even so didn't really think it was worth it for £2.05 per week but I stand to be convinced otherwise lol.

Does that allow for the 2.5% minimum increase each year?

That's a very good point Alan, no I hadn't factored that in!  Although, what with Covid I wonder how long the triple lock will last

badmemory

The triple lock will last until the next local/mayoral election.  If the conservatives win then the triple lock will be history (or at least the 2.5% part of it).  What those who reached SPA after April 2016 don't seem to realise is that it is worth more to them than those of us who reached SPA before that date.  So about £40 at 2.5% more than older people.  Even after all these years it still amazes me how many are prepared to vote against their & their family,s best interests.  Basically in the name of snobbery & nowadays seemingly in the name of racism.

OldBeanz

badmemory said:

The triple lock will last until the next local/mayoral election.  If the conservatives win then the triple lock will be history (or at least the 2.5% part of it).  What those who reached SPA after April 2016 don't seem to realise is that it is worth more to them than those of us who reached SPA before that date.  So about £40 at 2.5% more than older people.  Even after all these years it still amazes me how many are prepared to vote against their & their family,s best interests.  Basically in the name of snobbery & nowadays seemingly in the name of racism.

It is fairly obvious Corbyn is a racist but that's who Labour put forward at the last election. Thankfully Starmer is ridding the party of anti-Semites. Thornbury sneering at folk flying English flags resulted in the obvious response at the ballot box. 

TBC15

BoxerfanUK said:

BoxerfanUK said:

My question is; Should my last payment be March 2021 (£61.20) or April 2021 (£76.50) or do I need to go back through my bank statements and total up the payments

I found the answer, looks like DD's are taken May to April inclusive each year.  Thanks again though for the input

So April will be the last payment?

t0rt0ise

badmemory said:

The triple lock will last until the next local/mayoral election.  If the conservatives win then the triple lock will be history (or at least the 2.5% part of it).  What those who reached SPA after April 2016 don't seem to realise is that it is worth more to them than those of us who reached SPA before that date.  So about £40 at 2.5% more than older people.  Even after all these years it still amazes me how many are prepared to vote against their & their family,s best interests.  Basically in the name of snobbery & nowadays seemingly in the name of racism.

Some people vote for the best outcome for all and particularly for those less well off than themselves rather than totally selfishly looking out for themselves!