Voluntary National Insurance....Class 2 or 3?
in Pensions, annuities & retirement planning
17 replies 472 views
I wonder if anyone can help me? I'm due to receive my SP later this year. I will be approx. 3 years short and am trying to decide whether to pay them (before April this year) or not. It will increase my pension amount by approx. £22 per week. The missing years are pre 2016. Looking at some earlier posts on here it seems there's an option to pay Class 2, but on my pension forecast it states £824 is due for Class 3. Can anyone explain how I can pay Class 2 rather than Class 3? I have looked, but I've been unable to find out how to do this.
Many thanks in anticipation
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Do they apply?
Are you sure paying for 3 pre 2016 years will actually increase your forecast, never mind add £22/week???
If you post details of your forecast (in full) and NI record you will get plenty of help.
Estimate based on your National Insurance record up to 5 April 2022
Forecast if you contribute until 5 April 2023
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
Yes that's right I have 25 pre 2016 years and 1 partial year 2016/17, which I recently topped up, but is not yet showing on forecast and 1 more year to add (22-23), to give me 32 years
as long as you are in good health and expect to live 3 years beyond retirement, it's a good investment even at £800. ref. https://www.moneysavingexpert.com/news/2022/10/martin-lewis--how-to-boost-your-state-pension-if-you-re-aged-bet/
Special provisions apply to make sure that the new State Pension does not disadvantage those who reach State Pension age on or after 6 April 2016. The government extended the time limits for paying voluntary National Insurance contributions for the tax years from 2006 to 2007 up to 2015 to 2016.
Contributors have until 5 April 2023 to pay them.
In addition, the higher rate provisions that apply to late payment of voluntary National Insurance contributions were disapplied. The 2012 to 2013 rate was payable until 5 April 2019 for voluntary Class 2 National Insurance contributions for the tax years 2006 to 2007 to 2010 to 2011 and for Class 3 National Insurance contributions for the tax years 2006 to 2007 to 2009 to 2010.
From 6 April 2019, the higher rate provisions are applied to tax years 2006 to 2007 to 2015 to 2016.
Due to the unavailability of pension statements for the new State Pension introduced by the Pensions Act 2014, HMRC introduced regulation 61B of the SSCR 2001 to extend the time limits for paying voluntary Class 2 National Insurance contributions (NICs) for the contribution years 2006 to 2007 to 2015 to 2016.
The time limit was extended to 5 April 2023 but this only applies to those who:
And the relevant act