Voluntary NI contributions - No brainer?

bownyboy

I’m in almost exactly the same situation. 49, now retired and 6 years remaining with no gaps to fill. 

2022/23 will be taken care of by my (lower earnings limit) directors salary from my limited company.

I’ll then pay for the next 4 years to get me up to 34 years. 

Makes sound financial sense to me.

QrizB

molerat said:

How many pre 2016 years do you have ?

The general rule is

If less than 30 pre 2016 years held then making up to 30 cannot fail to add value

If Sea_Shell is 50, born in 1972, they will have been 16 in 1988 and can't have any more than 28 pre-2016 years?

Sea_Shell

I'll go and check....

I started work in 1989 and those 4 gaps are the only ones AFAIK.

molerat

Sea_Shell said:

I'll go and check....

I started work in 1989 and those 4 gaps are the only ones AFAIK.

Starting work is not important, it is the financial year in which you reached your 16th birthday that counts - you got 3 freebies.

If you have less than 30 then buying the one cheap pre 2016 plus 4 post 2016 will give you £183.97, 5 post 2016 will give you £184.53, the 6th year will only pay £1.18 / 62p.

The only urgency is 10-11 as that needs to be purchased before April 23 else it is lost.  19-20 is already at full weekly rate and will be available, subject to inflationary increases, until April 26.  Everything else can be bought nearer retirement time as the payment rate only increases with inflation so effectively stands still and reduces the falling under a bus scenario risk.

Sea_Shell

On checking my record further.    It states I have 30 years contributions.   The only gaps I have are the 4 noted in the OP.

My first NI full year, from employment, was 89-90 for which I have my P60 !!  (I have them all!!)

I've also been credited the two tax years prior to that as FULL years, which I can only assume was because I was in full time education until I started work.

I'm a late 1971, so turned 16 in the 87-88 tax year.

Sea_Shell

So my next question would be how 'easy' is it to do?   😎 or 😡?

As, for now, it seems to make sense to at least do the 11-12 year.

AIUI, You have to ring, discuss, agree which years and how much, they give you a reference and bank details, and you then make the transfer quoting that reference?

Sounds simple. 🤣🤣🤣

RG2015

Sea_Shell said:

So my next question would be how 'easy' is it to do?   😎 or 😡?

As, for now, it seems to make sense to at least do the 11-12 year.

AIUI, You have to ring, discuss, agree which years and how much, they give you a reference and bank details, and you then make the transfer quoting that reference?

Sounds simple. 🤣🤣🤣

That is the simple bit and the telephone agents are excellent. Always ring HMRC at 8:00 am on a weekday as you should get through within 10-15 minutes. Later in the day could mean being on hold for 45-60 minutes.

If you aren't aware you need to speak to the Future Pension Service fir.st and then separately to HMRC to arrange the payment.

You then need to wait up to 10 weeks before the payment is reflected on your Personal Tax Account online.

I have been through the pain and it is does work. 

jem16

Sea_Shell said:

On checking my record further.    It states I have 30 years contributions.   The only gaps I have are the 4 noted in the OP.

My first NI full year, from employment, was 89-90 for which I have my P60 !!  (I have them all!!)

I've also been credited the two tax years prior to that as FULL years, which I can only assume was because I was in full time education until I started work.

I'm a late 1971, so turned 16 in the 87-88 tax year.

Ok as you have exactly 30 years you will need to contact the Future Pension Centre to find out whether or not that earlier year will make a difference. The number is 0800 731 0175.

If they say that it will make a difference then you have to phone HMRC and say you want to pay Voluntary Class 3 for that year. It can then be paid by bank transfer and they will give you the details and the all important 18 digit reference number as per this.

https://www.gov.uk/pay-voluntary-class-3-national-insurance/bank-details

molerat

jem16 said:

Sea_Shell said:

On checking my record further.    It states I have 30 years contributions.   The only gaps I have are the 4 noted in the OP.

My first NI full year, from employment, was 89-90 for which I have my P60 !!  (I have them all!!)

I've also been credited the two tax years prior to that as FULL years, which I can only assume was because I was in full time education until I started work.

I'm a late 1971, so turned 16 in the 87-88 tax year.

Ok as you have exactly 30 years you will need to contact the Future Pension Centre to find out whether or not that earlier year will make a difference. The number is 0800 731 0175.

If they say that it will make a difference then you have to phone HMRC and say you want to pay Voluntary Class 3 for that year. It can then be paid by bank transfer and they will give you the details and the all important 18 digit reference number as per this.

https://www.gov.uk/pay-voluntary-class-3-national-insurance/bank-details

OP has 30 years total, 3 being post 2016 and 4 gaps so 27 pre 2016.  50 - (30 + 4) = age 16.

Audaxer

RG2015 said:

Sea_Shell said:

So my next question would be how 'easy' is it to do?   😎 or 😡?

As, for now, it seems to make sense to at least do the 11-12 year.

AIUI, You have to ring, discuss, agree which years and how much, they give you a reference and bank details, and you then make the transfer quoting that reference?

Sounds simple. 🤣🤣🤣

That is the simple bit and the telephone agents are excellent. Always ring HMRC at 8:00 am on a weekday as you should get through within 10-15 minutes. Later in the day could mean being on hold for 45-60 minutes.

If you aren't aware you need to speak to the Future Pension Service fir.st and then separately to HMRC to arrange the payment.

You then need to wait up to 10 weeks before the payment is reflected on your Personal Tax Account online.

I have been through the pain and it is does work. 

They say you need to wait up to 10 weeks, but when I have phoned HMRC again about 3 weeks after making the payment, they then find and apply the payment and it is has been reflected on my online forecast and NI record the following day.