Voluntary NI contributions - No brainer?

jem16

gamston said:

jem16 said:

gamston said:

hi folks, just an update how i got on
was on the phone to the Pensions people for 40min before they answered, but once call was answered the lady at the pension desk told me all the stuff then she told the HMRC man and put me thou to him he also sorted me out
so its a long wait but the folks there do try to help

So what did they actually tell you? How many years did you require?

It might help others in a similar position.

told i could pay for 6 years, £4893.20  it would add £30 something to pension, (by pension folks) she then transffered me to HMRC the guy there went though my details and gave me 18 digit code to use on the pay online system
he said as I'm close to getting pension i need to ring the 0300 number in couple of weeks to ensure the moneys in the account

Thanks. I'm glad to hear that they confirmed that 6 years were enough and not the 8 that you originally thought you needed.

t0rt0ise

gamston said:

jem16 said:

gamston said:

hi folks, just an update how i got on
was on the phone to the Pensions people for 40min before they answered, but once call was answered the lady at the pension desk told me all the stuff then she told the HMRC man and put me thou to him he also sorted me out
so its a long wait but the folks there do try to help

So what did they actually tell you? How many years did you require?

It might help others in a similar position.

told i could pay for 6 years, £4893.20  it would add £30 something to pension, (by pension folks) she then transffered me to HMRC the guy there went though my details and gave me 18 digit code to use on the pay online system
he said as I'm close to getting pension i need to ring the 0300 number in couple of weeks to ensure the moneys in the account

I did this a couple of years ago paying for the final year just before retirement and despite my NI record being updated in time, I didn't get the extra amount in my pension. I chased them for it and got it all eventually backdated but it took several months. So be prepared for it not to go as smoothly as you hope.

Cottage_Economy

Rang at 8:15 this morning and got through after about 15 minutes. 18 digit payment number procured. The adviser also gave me the HMRC sort code and account number in case it didn't work trying to pay online. I'll make the payment online this morning and then that's another job jobbed.

LouisaJaney

Hi, could you please advise on my scenario? I have tried and tried, without sucess, to get through to the Future Pensions Service helpline. They just keep cutting me off.

I am a teacher who retired in summer 2019. I do not intend to work again. I am currently 61. 

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

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

£179.23 a week

Forecast if you contribute another 2 years before 5 April 2028

£185.15 a week

£185.15 is the most you can get

You cannot improve your forecast any further, unless you choose to put off claiming.

If you’re working you may still need to pay National Insurance contributions until 22 December 2028 as they fund other state benefits and the NHS."

There are some missing years in my record - caring for children, a year of ill-health, a year taken out for further study - but it doesn't look as if I can, or need to, pay up for these in order to reach £179 per week. Am I right?

And also  - sorry if I'm being thick - with regard to the next 2 years, does it literally mean that, even though I am not working, if I want to receive this maximum £185 per week, then I need to pay 2 years' worth of NI contributitions? And, if so, please could you tell me hoow much that is? And if it's worth it?

TIA

molerat

You need to do nothing to receive £179.23.  Buy one extra year to get £184.52, buy another and it gets you an extra 63p taking you to £185.15.  Your sweet spot is to wait until the hoo ha and panic has died down and buy 2021-22 after April for £800.80 - not much dearer than the cheapest currently 20-21 for £795.60 - and will save your blood pressure hanging on the phone for hours trying to get through.  Buying one year is definitely worth it, the second not so much.

Is 2019-20 showing as full or part full which might make a difference to my above comments ?

LouisaJaney

.

molerat said:

You need to do nothing to receive £179.23.  Buy one extra year to get £184.52, buy another and it gets you an extra 63p taking you to £185.15.  Your sweet spot is to wait until the hoo ha and panic has died down and buy 2021-22 after April for £800.80 - not much dearer than the cheapest currently 20-21 for £795.60 - and will save your blood pressure hanging on the phone for hours trying to get through.  Buying one year is definitely worth it, the second not so much.

Is 2019-20 showing as full or part full which might make a difference to my above comments ?

Hi, Molerat. Thank you so much for this. 2019-20 is full

lameire

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

pinnks

HMRC normally require you to complete and submit a form CF83 (at the end of NI38, which also included the criteria for Class 2 v 3).  They have also stated on their customer forum that is non-residents submit that form before 5 April 2023 then the window will stay open and they will be able to fill pre-2017/18 years even if things are not sorted by then.  Whether your existing letter will suffice is moot.  I would complete and send the form with a covering letter pointing at your January letter and saying you plan to fill as moany years as possible to benefit your pension and look forward to receiving a schedule of possible payments, or something like that...

I'll leave those who are far quicker at the permutations than me to suggest the cheapest payment options.  the current cost of Class 2 is just under £165 for each year; Class 3 just under £825.  Each year adds £275 per year to your pension.

lameire

I sent CF83 at the end of January and thank goodness, I also enclosed the figures DWP and Future Pensions had given me, stating I wanted to pay for at least 5 maybe 6 years pre 2016 as well as some post 2016.s to help me attain full pension.

I told them I was seeking clarification as to whether or not these years and class 3 costs were out of date and asking for an up to date summary of cost for each year in Class 2 if awarded and separately, the same for class 3. I needed info in order to pay voluntary NIC's
I also asked them to change my NI record for class 2 NIC's awarded.

I asked if they could deal urgently as i didnt want to miss the April deadline

I attached a summary of my employment abroad up to the present time.

Fingers crossed!!

Sorry again about the mix up on my part thinking this was the other forum I'd posted on!

pinnks

Sounds as though you are going to be fine and HMRC will get back to you as they work through the mountain of work they now face...