Voluntary NICs for the 2006/07 to 2015/16 tax years

John_Gray

"HMRC has made changes to extend the time limits for paying voluntary NICs for the 2006/07 to 2015/16 tax years inclusive, to ensure contributors who reach State Pension Age under the new State Pension system are not disadvantaged. Those affected will have more time to pay voluntary class 2 or class 3 contributions for the years from 2006/07 to 2015/16.  The extended time limits apply if the person makes the payment by 5 April 2023."

My friend (yes!) has contribution gaps during several of the relevant years, and has received the figures for voluntary Class 3 contributions required to make up the full years.

My question is: will these amounts stay the same from now until the last payment date of 5 April 2023?  I thought I read somewhere - but now cannot find - information that these amounts might increase each April.

Am I correct?  If so it would be best to pay before 5 April 2021...

Thanks!

jamjar92

What does your state pension forecast say, my OH as 14 years until she reaches SP age and me 13 years. I have to pay another 4 years and OH another 2 to get full SP. If you are already at or near SP age, you may not have the time to make up the shortfall and the only way would be pay class 2 or 3 voluntary payments. The sooner you do the cheaper it is, so yes get it paid before 5th April 2021.

molerat

The prices for all those years will increase from April 6th to £800.80 for a full year / £15.40 per week, and increase again from April 2022,  in accordance with the 2yr / 6 yr increase rule, the extension treating them all as 2016/17 for the purposes of that rule.

They need to understand what effect paying pre 2016 years will have on their pension, just because the forecast states they are available to buy does not necessarily mean they should be bought as they may not add value.

John_Gray

Thanks, chaps!