Guide discussion: Voluntary national insurance contributions

FlyingTreeCavalier

Hello,

I'm new to the forum so apologies for any silly questions/mistakes.

I have checked my State Pension Forecast and seen that I have 9 full years of NI contributions. Years 2009/10, 2010/11 and 2014/2015 are incomplete. I can see that I need to pay £491.35 to top up 2014/15, but it says that my records have not been updated for the other two years, so I have no idea how much I would need to pay to top them up.

I would like to top up one extra year to reach the 10 years required for the minimum state pension. I have been working abroad since 2014 and am likely to do so until retirement.

How can I find out the amounts I would need to pay to top up the other two years? I suspect that I worked more in 2010 than in 2014 so think I would need to pay less for that year. I have tried repeatedly to call the Future Pension Centre but every time the call fails after I've selected the menu options. I have also repeatedly tried to call HMRC and been unable to progress further than the menus.

Which one can tell me how much I would need to pay for 2009/10 or 2010/11 - is it HMRC?

If so, does anyone have a tip on how to get through? It's incredibly frustrating! I feel like the deadline will come and go without me ever being able to speak to anyone and resolve this.

molerat

FlyingTreeCavalier said:

Hello,

I'm new to the forum so apologies for any silly questions/mistakes.

I have checked my State Pension Forecast and seen that I have 9 full years of NI contributions. Years 2009/10, 2010/11 and 2014/2015 are incomplete. I can see that I need to pay £491.35 to top up 2014/15, but it says that my records have not been updated for the other two years, so I have no idea how much I would need to pay to top them up.

I would like to top up one extra year to reach the 10 years required for the minimum state pension. I have been working abroad since 2014 and am likely to do so until retirement.

How can I find out the amounts I would need to pay to top up the other two years? I suspect that I worked more in 2010 than in 2014 so think I would need to pay less for that year. I have tried repeatedly to call the Future Pension Centre but every time the call fails after I've selected the menu options. I have also repeatedly tried to call HMRC and been unable to progress further than the menus.

Which one can tell me how much I would need to pay for 2009/10 or 2010/11 - is it HMRC?

If so, does anyone have a tip on how to get through? It's incredibly frustrating! I feel like the deadline will come and go without me ever being able to speak to anyone and resolve this.

Were you self employed for those years ?  That is the usual reason for the "we are checking" heading.  HMRC are the ones that deal with the actual NI record. https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals.

Working abroad may entitle you to pay class 2 which is excellent value at around £160 - £170 per year so well worth looking in to.  When do you reach state retirement ?

FlyingTreeCavalier

Thank you very much for your reply Molerat. Yes, I was self-employed 2010-2014. I'm not due for retirement until 2046, so it sounds like I'd be better off making class 2 contributions, both backdated and from now on, and then I could actually potentially reach the full pension amount. Clearly I need to speak to HMRC, so I guess I'll just persevere

Thank you again for taking the time!

movingon

I know how many years I need to top- up because I went through the process two years ago, and have been paying an extra year each year . Each year I get a different ref no. Now I want to pay for three years together and complete the process, but I just cant get through to HMRC to get the ref no. (I think I have aged five years in the attempst!) I am going away in March, hence the plan to do the bank transfer now and in any case I surmise that the inability to answer the phone on the part of HMRC will only get worse the closer we get to April. I have seen I can send a cheque. Is this still the case, and is it "safe", or do we think they would lose the thing or fail to apply it to my account? Thanks

lameire

lameire said:

https://forums.moneysavingexpert.com/discussion/6359429/voluntary-ni-contributions-no-brainer/p13

Hi,

I'm new to this forum and this is my first post.

I sent a letter to HMRC in January requesting NIC's to be re-classified as Class 2 because

I worked in the UK for 24 years (all full) until I moved permanently abroad & have worked abroad ever since.

 I havent heard a thing from HMRC and have been cut off after waiting up to an hour. Crazy.

SO, IF I dont hear back in time, what are my options? Do I calculate (with some help) on the basis of Class 2 and just send them a money transfer or decide to proceed with filling gaps as Class3, and if so, what is the most economic way of doing this for me?

IF I have to pay as Class 3, can I pay for pre2016 years and say even 2 years post 2016.

I'd plan to pay any remaining years after 4/23 t but  before 4/24 tax. Would I be reimbursed if at a later date I'm told some years were approved for class 2?

I was in touch with DWP and Future Pension Centre last year before April and they told me to write iro class 2/3 BUT they also gave me 2 different ways of paying back the years I owe.

1. pay 6 years from 2010 to 2015/16  OR (from 2006 through to 2011/12)

THEN pay 5 years from 2016 to 2021 

THEN set up direct debit for remaining 3 years.

TOTAL COST  £9037.60 plus 3years direct debit

TO ATTAIN  £185.15

Thats out of date now and I wonder if someone can help re-calculate  for CLASS 3 AND CLASS 2.Thanks

UP TO DATE FORECAST

24 years full and 21 years when you didnt contribute enough (2000 to present day)

6yrs to contribute before april 2027.

Your forecast is £139.98 a week, £608.66 a month, £7,303.96 a year

Estimate based on your National Insurance record up to 5 April 2022

£113.53 a week

Forecast if you contribute until 5 April 2027

£139.98 a week

 

COPE estimate £43.03 pw

 

Many Thanks

Can anyone help?
Do I Pay NIC class2, if I dont hear back from HMRC ? What would that cost ie  and for what years?

If they DONT award me Class 2, will I run the risk of not being able to make pre2016 class 3 NIC's?
In which case, if I go with my current Pension Forecast and NIC Class 3 Summary, whats the most economical way for me to get to 185.15. based on above figures /forecast.
  
Many Thanks

pinnks

Did you not read my reply to the original post (that your link points at)?  Leaving the cost issue to one side, you should start the CF83 process with HMRC as that will protect those earlier years.  Even if HMRC could complete the process by 5 April, which I doubt very much, they give you 8 weeks to pay after that anyway.

In the meantime you can ask on here to get an estimate of the cost

p00hsticks

movingon said:

. I have seen I can send a cheque. Is this still the case, and is it "safe", or do we think they would lose the thing or fail to apply it to my account? Thanks

Pay voluntary Class 3 National Insurance: By cheque through the post - GOV.UK (www.gov.uk)
You need to make sure that you include all the relevant details they ask for in an accompanying letter (I'd also write your details including NI number on the back of your cheque)
I understand (but haven't seen anywhere official) that HMRC have a postal backlog of many months, but that if they log your letter as having arrived by the April deadline then it will count. 
(I'm assuming the years you require are for 2016-17 or earlier; if not, and you are not very close to State Pension age, then it might be worth waiting until after April)

lameire

pinnks said:

Did you not read my reply to the original post (that your link points at)?  Leaving the cost issue to one side, you should start the CF83 process with HMRC as that will protect those earlier years.  Even if HMRC could complete the process by 5 April, which I doubt very much, they give you 8 weeks to pay after that anyway.

In the meantime you can ask on here to get an estimate of the cost

Thanks I'll check now. I posted on a thread thinking it was this one(similar names) and couldn't understand why no one had responded. Got myself into a real pickle!!

I started the CF83 process at the end of January. My only issue may be how they define 'immediately' before leaving because I was on maternity leave when I resigned my job and stayed in the UK for a while before transitioning my move abroad. I was out of work(looking for suitable work abroad) but did not claim any benefits (except child benefit for a short period )until the move was complete ie found a home, work, school etc.


Would so appreciate an estimate of cost from someone.

Apologies again for my lack of technical knowledge!!

Tiz_world

Thanks very much molerat, your answer to my question has helped greatly.

Cheers

alfonso

molerat said:

alfonso said:

molerat said:

alfonso said:

Thanks for your patience

I have just found the COPE figure which says

Your COPE estimate is £92.92 a week

This will not affect your State Pension forecast. The COPE amount is paid as part of your other pension schemes, not by the government.

It doesn't affect your pension but was instrumental in calculating your 2016 starting amount and essential in working out if pre 2016 years can add value which in your case as was already surmised was a big fat no.

Does that mean the max years I can pay back is 6?

Yes.  You can only buy back as far as 2016-17, so 6, but do have 4 going forward, 2022-23 to 2025-26, so 10 available to get your 8 viable years.  2016-17 ceases to be available from April.

Hi again molerat

Since last post I have been trying to contact Future pensions without success but will continue to do so.

Noticed they have changed option messages slighty to include the payment of passed years VC will be accepted after the deadline of April this year due to the traffic created on the lines.

Re my case of 8 yrs to repay from the 10 available, can I just pay 2 per year to avoid sourcing a lump sum for the full 8 ?

TIA