Voluntary NI contributions - No brainer?

lameire

Here's hoping. Meantime have I given enough info for someone on this forum to check if 6 pre2016 years and 5 post2016 years plus 3more going forward is best option for class 3 and does that also follow for class2?
I ask because 5yrs pre2016 and 9 years post seems to give a lesser figure?
Anyone?

Thanks 

lameire

I also have just realised that the figs i got from FPC and D of W DID NOT INCLUDE THE COPE FIGURE.
That figure hurt appeared  on my NI forecast out of the blue.
I don't know if its worth my while contributing 14 years of  Class3. 
I really need a bit of help here please


Thanks

molerat

You need 14 years to reach £185.15. You have 10 pre 2016 and 6 post 2016 gaps with a further 5 going forward. You can safely add up to 6 pre 2016 years, the maximum you can use is 30, which will each add £4.73 to your pension.  Each post 2016 year will add £5.29.  The preference will be for post 2016 years as they will add slightly more if you don't want to pay the full amount.  The price of class 3 years will be shown on your forecast, class 2 for the vast majority will be £163.80 rising to £179.40 next year.  Voluntary contributions will increase your pension and class 3 will be recovered gross in around 3 years so are worth doing.  6 pre and 8 post give you £184.23, 5 pre and 9 post £184.79.  Years going forward will be at a higher price as will any available post 2016 years (except 2021-22) if you don't do it before April

dealyboy

... Just to raise the contrary position.

Is it worth making voluntary NI contributions to get the maximum SP if otherwise one would get the gateway drug benefit of Pension Credit?

I know there is a lot of publicity at the moment, but isn't it a government catch-22?

BTW I am in receipt of maximum new SP, no benefits due to capital.

lameire

molerat said:

You need 14 years to reach £185.15. You have 10 pre 2016 and 6 post 2016 gaps with a further 5 going forward. You can safely add up to 6 pre 2016 years, the maximum you can use is 30, which will each add £4.73 to your pension.  Each post 2016 year will add £5.29.  The preference will be for post 2016 years as they will add slightly more if you don't want to pay the full amount.  The price of class 3 years will be shown on your forecast, class 2 for the vast majority will be £163.80 rising to £179.40 next year.  Voluntary contributions will increase your pension and class 3 will be recovered gross in around 3 years so are worth doing.  6 pre and 8 post give you £184.23, 5 pre and 9 post £184.79.  Years going forward will be at a higher price as will any available post 2016 years (except 2021-22) if you don't do it before April

Thank you so much for this. Extremely helpful. Thank goodness I found this website and forum!!

Aristotle67

I made a payment of £4945.20 (6 x £824.20) recently to cover six years when I missed payments; five of these were pre 2016 and the other was 2016-17. I was given one 18 digit number to cover all six payments and advised to do it in one lump sum. The person with whom I spoke advised that she would note on my record to which years these payments pertained. The payment account reference was HMRC_NIC_RECEIPTS.

The payment for 2016-17 has been applied; my record for this year now reads "full year" and the total number of contributory years has increased by one. The other five payments have not been applied. Possibly these take longer to process because they are pre 2016-17? I will give it a few days and then if those years remain unchanged I shall chase it up.