Voluntary National Insurance contributions

thingswerentthisbadinmyday

Hi everyone.
Long time reader, but only just joined.
This is not a question about whether or not to consider making voluntary payments, it’s a request for clarification as to which department is responsible for what.
I consider myself fairly well up on financial matters in general but I have to confess being totally confused as to the relationship and limits of responsibility between HMRC and DWP when it comes to NI and the State pension.
Can anyone help me out with what could be regarded as a ‘dummies guide’ as or which department does what?
I need to get this clear in my head once and for all.
Within the last year, I’ve already endured over 6 months delay in a cheque (having been lost somewhere) being credited to the correct NI record.
Currently, my BACS payment for another year of voluntary NI contributions still isn’t showing on my record, despite the payment being made over 12 weeks ago.
Before writing to my MP and or the DM to vent my frustration at this absolute shambles, I’d like to have the facts clear in my mind.
Thank you.

eskbanker

Voluntary NI contributions are an HMRC matter, and they're not renowned for applying them particularly quickly, although in itself that shouldn't be a huge issue unless you're close to taking your state pension?  Having to chase around after a lost cheque is obviously less satisfactory though....

thingswerentthisbadinmyday

eskbanker said:

Voluntary NI contributions are an HMRC matter, and they're not renowned for applying them particularly quickly, although in itself that shouldn't be a huge issue unless you're close to taking your state pension?  Having to chase around after a lost cheque is obviously less satisfactory though....

So is it a case of HMRC being the “collection vehicle” for the actual payments, with the DWP being the ‘record keeper’? Presumably HMRC updates its own system which then updates the individual’s NI record?
And it’s the DWP which deals when you claim your State pension and authorises payment?
I’m not trying to make things sound more difficult, just trying to get it clear in my head.

xylophone

See

https://community.hmrc.gov.uk/customerforums/sa/401ccf9b-b764-eb11-8fed-00155d9c8ea0

Silvertabby

I made my 2 payments (2 years each) by bank transfer, quoting the 18 digit number supplied by HMRC.

Both were applied reasonably quickly, considering we were still in lockdown at the time. 

To be fair, I applied for my State pension on line in between Christmas and NY.  I received a letter just a few days later confirming my application, and saying that my first payment of £X (less than 4 full weeks) would be credited to my bank account on X date, with £Y being paid on Y date and then every four weeks after.  I have just received my first payment, bang on time.

I know that this is of no comfort to those who are still waiting, but the system isn't a complete crock. 

thingswerentthisbadinmyday

Silvertabby said:

I made my 2 payments (2 years each) by bank transfer, quoting the 18 digit number supplied by HMRC.

Both were applied reasonably quickly, considering we were still in lockdown at the time. 

To be fair, I applied for my State pension on line in between Christmas and NY.  I received a letter just a few days later confirming my application, and saying that my first payment of £X (less than 4 full weeks) would be credited to my bank account on X date, with £Y being paid on Y date and then every four weeks after.  I have just received my first payment, bang on time.

I know that this is of no comfort to those who are still waiting, but the system isn't a complete crock. 

Thanks for taking the time to reply.
My experience appears to be very far removed from your own.
I phoned so many times about my missing cheque and was flabbergasted to be told that if I wrote in to chase its whereabouts that my letter would go ‘on the bottom of the pile’ with a ‘current’ (at that time) response time of 26 weeks. Apparently due in part to something called ‘working from home’ or some such new fangled notion. I have no idea what their response times are today but apparently, they’re published internally.
I guess that explains my total and absolute lack of confidence in hoping to see my recent BACS payment reflected in my personal NI record anytime soon.
I’m delighted to hear that your own experience was a good one - that’s exactly how it should be. As with many things at the moment, it shouldn’t be a lottery as to the level of service you’re entitled to expect and receive.

thingswerentthisbadinmyday

xylophone said:

See

community.hmrc.gov.uk/customerforums/sa/401ccf9b-b764-eb11-8fed-00155d9c8ea0

I’ve just read through the 3 or so pages.
I rest my case.

eskbanker

thingswerentthisbadinmyday said:

eskbanker said:

Voluntary NI contributions are an HMRC matter, and they're not renowned for applying them particularly quickly, although in itself that shouldn't be a huge issue unless you're close to taking your state pension?  Having to chase around after a lost cheque is obviously less satisfactory though....

So is it a case of HMRC being the “collection vehicle” for the actual payments, with the DWP being the ‘record keeper’? Presumably HMRC updates its own system which then updates the individual’s NI record?
And it’s the DWP which deals when you claim your State pension and authorises payment?
I’m not trying to make things sound more difficult, just trying to get it clear in my head.

Not sure what you mean by 'the DWP being the ‘record keeper’' - the NI data will be managed by HMRC, but will be used by DWP when calculating pension entitlement.  But yes, the principle is that HMRC deal with NI and DWP handle pensions....

Silvertabby

thingswerentthisbadinmyday said:

Silvertabby said:

I made my 2 payments (2 years each) by bank transfer, quoting the 18 digit number supplied by HMRC.

Both were applied reasonably quickly, considering we were still in lockdown at the time. 

To be fair, I applied for my State pension on line in between Christmas and NY.  I received a letter just a few days later confirming my application, and saying that my first payment of £X (less than 4 full weeks) would be credited to my bank account on X date, with £Y being paid on Y date and then every four weeks after.  I have just received my first payment, bang on time.

I know that this is of no comfort to those who are still waiting, but the system isn't a complete crock. 

Thanks for taking the time to reply.
My experience appears to be very far removed from your own.
I phoned so many times about my missing cheque and was flabbergasted to be told that if I wrote in to chase its whereabouts that my letter would go ‘on the bottom of the pile’ with a ‘current’ (at that time) response time of 26 weeks. Apparently due in part to something called ‘working from home’ or some such new fangled notion. I have no idea what their response times are today but apparently, they’re published internally.
I guess that explains my total and absolute lack of confidence in hoping to see my recent BACS payment reflected in my personal NI record anytime soon.
I’m delighted to hear that your own experience was a good one - that’s exactly how it should be. As with many things at the moment, it shouldn’t be a lottery as to the level of service you’re entitled to expect and receive.

I suspect that doing everything on line helped.  Sadly, your cheque and the accompanying paperwork would have been stuck in a pile until it could be dealt with in-house, whereas my payments and claim would have been dealt with by a home worker.  No excuse, though.  A system should have been put in place to ensure fair treatment across the board, as not all (nearly) pensioners will have the ability or means to deal purely on line.

I retired (LGPS administrator) well before Covid, but a colleague I am still in touch with tells me that they took it in turns to go in to the office to open the paper mail, then scan the images to the system so they could be dealt with by the home workers.  Things didn't happen as quickly as they used to, but the system worked reasonably well all things considered.

Misslayed

I paid for my missing years back in October.  I called HMRC,  and the call handler had all the information I had given at the beginning. Very helpful, very efficient. He strongly advised me to ring the helpline (0300 200 3500) in about three weeks, to check they have the money and to ask the handler to manually allocate it to the specific years that are missing. He said this would speed up the process of it appearing on my forecast. I did, and my record was instantly updated. 

Exotoxin1

HMRC = paying in
DWP = paying out