Confused on how to pay voluntary Class 3 National Insurance

zagfles

Quite often you don't know if class 3 will benefit you or be wasted. For example someone retiring at 55 with a partial last year and a bit under the max single tier. Paying to make that year a full year would be wasted if they get bored of retirement or need a bit of extra income and get a part time job paying over the LEL.

You could wait, but then after 2 years the rate could go up, and after 6 years you've lost the opportunity.

polkasquares

jem16 said:

polkasquares said:

Silvertabby said:

zagfles said:

tacpot12 said:

You should only need to call the Future Pensions Centre if you aren't certain that making voluntary contributions will increase your pension, but I think the NI Office checked that I had done this and that I had been told that the contributions would make a difference. I can't remember if they said they wouldn't take a payment if I hadn't spoke to Futher Pensions first.  

Thanks - I understand the rules so will try the NI office direct when the time comes...

The NI office did ask me if I had spoken to Future Pensions, but were fine when I said that wasn't necessary as I was only paying for full post 2016 years.

They gave me an 18 digit reference.  I then made the payments by BACS, quoting the reference.  Payments appeared on my records within about 6 weeks.  (Paid for 4 years in 2 instalments).

So once they have provided you an 18 digit reference number, where you able to select a specific year to make your payments?

If you're only paying for one tax year, then that 18 digit reference includes the amount for that year so they know which year to attribute it to. If paying for more than one year they will have made a note when you phoned about which years you want to pay.

Ah I see. Thanks!

polkasquares

I was just thinking that instead of phoning them and waiting in line to be directed to speak to a real person, they could make our lives and their lives easier by allowing you to create an 18 digit reference number through your Gateway account.

jem16

polkasquares said:

I was just thinking that instead of phoning them and waiting in line to be directed to speak to a real person, they could make our lives and their lives easier by allowing you to create an 18 digit reference number through your Gateway account.

If that could be done you may end up with people paying for years which won’t improve their pension. HMRC usually ask if you have checked out your situation with the DWP.