Stopping Class 3 contributions.

markhill19

I currently pay Class 3 NI contributions by direct debit. I will able to get my State Pension in Sep 2023. How do I stop paying the contributions or do they stop automatically. 

p00hsticks

I donlt know for sure but I imagine you'll need to get in touch with HMRC and tell them to stop. Even if they stop automatically when you actually reach SPA, assuming that, like me, you are paying them solely in order to increase your SP amount there is no point continuing after April 2023 - but I'm not sure that HMRC will necessarily assume that you want them stopped then.

squirrelpie

The rules have changed. You can cancel a direct debit with your bank nowadays, though it would still be a good idea to tell HMRC. That's if you don't completely trust HMRC, of course

https://www.directdebit.co.uk/faqs/cancelling-a-direct-debit/

NedS

p00hsticks said:

I donlt know for sure but I imagine you'll need to get in touch with HMRC and tell them to stop. Even if they stop automatically when you actually reach SPA, assuming that, like me, you are paying them solely in order to increase your SP amount there is no point continuing after April 2023 - but I'm not sure that HMRC will necessarily assume that you want them stopped then.

Just to reiterate what @p00hsticks said, the year in which you reach State Pension Age cannot count towards your state pension, so there is no point paying voluntary NI contributions after April 6th 2023 (although presumably you should pay for that week).

What does your state pension prediction say? Do you need this current year? Presumably you do if you are still paying voluntary NI contributions.

dgp1000

They do not stop automatically. HMRC continue to take a DD until you cancel it with your bank. All that happens is HMRC send you a letter when their DD is rejected. Which you ignore unless you want to continue paying in. I waited until after the last payment for 2021/22 was taken before cancelling mine - this was taken on 8th April 2022 so after the end of the tax year. You can check you’ve paid the whole year a few days after the last payment has been taken on https://www.gov.uk/personal-tax-account I checked mine on 13th April 2022 and cancelled the DD the same day.