Guide discussion: Voluntary national insurance contributions

molerat

Sumselkb said:

Hello, I phoned today and managed to get through to HMRC about paying voluntary ni contributions and have been given an 18 digit reference number.

When I logged into my digital banking to make the payment it asks whether it is payment to a Personal account or a Business account. I am assuming I should select a Business account? I know the sort code and account number. For the account name I should type HMRC NIC Receipts?

That is what it says in the instructions

https://www.gov.uk/pay-voluntary-class-3-national-insurance/make-an-online-or-telephone-bank-transfer

drlabman

Hoping someone can advise me, although I'm pretty sure I know the answer.  My wife only has 12 years full contribution, 6 years left to contribute - which she has no intention of doing by working (despite my encouragement!).  Her forecast, without making further contributions is £69.50 a week, so I'm keen for her to fill some gaps.  She has no company pension.

The cheapest years she can fill are, in ascending order:
2020-2021 £321.30
2013-2014 £380.40
2012-2013 £538.90
2019-2020 £618.15
2018-2019 £744.95
2017-2018 £760.80
2021-2022 £800.80

The remainder are £824.20

Most of those would be before the new deadline this year.  2021-2022  would be by April 2024.

I presume it would be wise to top up some of those years, if not all.  Cheapest first presumably.  Would those years get her up to, say, £100 a week?

Thanks for any help.

molerat

All years will add value.  2015-16 and earlier will add £4.73 each and 2016-17 onwards will add £5.29 each.

The top 6 will take her to £100.12.

It is as simple as how much money you want to spend.

She needs another 22 to reach the max.

drlabman

molerat said:

All years will add value.  2015-16 and earlier will add £4.73 each and 2016-17 onwards will add £5.29 each.

The top 6 will take her to £100.12.

It is as simple as how much money you want to spend.

She needs another 22 to reach the max.

Thanks for that.

Here's a question out of curiosity.  When you get your 18-digit reference number and pay by bank transfer, how does HMRC know which years you want that payment to cover.

p00hsticks

drlabman said:

molerat said:

All years will add value.  2015-16 and earlier will add £4.73 each and 2016-17 onwards will add £5.29 each.

The top 6 will take her to £100.12.

It is as simple as how much money you want to spend.

She needs another 22 to reach the max.

Thanks for that.

Here's a question out of curiosity.  When you get your 18-digit reference number and pay by bank transfer, how does HMRC know which years you want that payment to cover.

My understanding is that it's linked to the 18-dgit reference somehow,  hence the importance of getting one rather than just using your NI number (as others have suggested would be a way round the long phone waits, but wonlt ensure the correct years are creditted)

chaliapin

Dear all,

Yet another request for hand holding, I'm afraid, as neither my wife nor I have been able to get through to the Future Pensions Centre.

 My wife, who's 66 in September, retired from the civil service in September 2017 at age 60.  At that point she had 44 years of full contributions, the first being 1975/76.

 I've got three questions for the very helpful crowd online here.  Below those Qs, I have set out the relevant figures and quoted numbers from her tax account.

 1/  Am I right in thinking that paying the five missing years of NI (18/19 to 22/23 inclusive) will make up the shortfall, ie £178.94 - £152.49 = £26.45 = 5 x £5.29pw?

 2/  As a matter of interest, why is her possible max only £178.94pw?  Is it because she was contracted out for so long?  

 3/  Is it correct that there's no point making payment against the part year April 23 to September 23 

 Thanks for any and all help.

 Chaliapin

 COPE estimate is £110.78 per week.

Missing years of contribution and their cost

18/19 cost of £824.20

19/20 cost of £824.20

20/21 cost of £795.60

21/22 cost of £800.80

You can get your State Pension on XX September 2023 

Your forecast is £157.78 a week, £686.06 a month, £8,232.74 a year 

You need to continue to contribute National Insurance to reach your forecast 

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

£152.49 a week 

Forecast if you contribute until 5 April 2023

£157.78 a week 

You can improve your forecast 

You have shortfalls in your National Insurance record that you can fill and make count towards your State Pension. 

The most you can increase your forecast to is

£178.94 a week 

molerat

1) Yes

2) Her long contracted out service would have reduced her 2016 starting amount to around the basic old pension thus needing 8 post 2016 years to reach (just under) the max. There were only 7 between 2016 and state retirement hence the shortfall.

3) You cannot purchase part years and the year in which you reach state retirement does not count anyway.

Has she been looking after grandchildren at all in those years ?

chaliapin

Thanks, molerat, that’s v quick and v helpful.

HGC_Golfer

I have tried several times to contact the HMRC helpline (0300 200 3500) in order to obtain the 18 digit reference number that I need to make a payment for gap years (2020/21 and 2021/22). I go through the 4-5 minute automated service, giving my NI number, etc. but then get advised to check their website and get cut off! 

I didn’t think that giving HMRC money would be so difficult but is there another phone number that I should be trying or is there any other way of obtaining the 18 digit reference number? 

Thanks

molerat

Cheque in the post with proof of posting is an alternative method, no reference number needed.