Pension service eligibility to pay voluntary class three NIC after retirement, to increase pension. 2 March at 11:44AM in Pensions, annuities & retirement planning 15 replies 558 views

frustrateddotcodotuk

I am in receipt of reduced new state pension born in 1955.
Following newspaper articles and MSE advice I started to see about paying voluntary Class three contributions
I have 22 qualifying years on my NI record and it states at least 13 years when I could pay to add years at £824.20 per year which I would like to do.
I contacted the pension service on Jan 19th 2023.
They said they would write  to me to tell me if paying voluntary contribution would be beneficial.
I have heard nothing.
I rang the pensions service again on 28th and they said the letter/statement was issued on 6th Feb 2023, and led me to believe it was sent to the HMRC and to ring them on 0300 200 3500
Well .... I have tried at times and just get put on hold for 1.25 hours 'till you are cut off and told to ring back.
I assume there are many  people in limbo like myself

Does anyone know who the pensions service write to once they have looked at your case.? Is it the HMRC or to me?

You cannot pay using online banking without a class three insurance reference number via the gov.uk website. You get this from ringing the HMRC but they are currently not answering your call.

I rang the Pensions Service this morning who have changed their options and for paying voluntary  contributions refer you to the gov.uk website for help.
There seems no way of emailing them or a chatline/robot call.
I feel some what helpless over this.
My suggestion would be an extension of the April 5th deadline for paying more than six years

p00hsticks

frustrateddotcodotuk said:

You cannot pay using online banking without a class three insurance reference number via the gov.uk website. You get this from ringing the HMRC but they are currently not answering your call.

True, but you can pay by post with a cheque and then don't need the reference 
Pay voluntary Class 3 National Insurance: By cheque through the post - GOV.UK (www.gov.uk)

frustrateddotcodotuk said:

My suggestion would be an extension of the April 5th deadline for paying more than six years

I don't believe it's as simple as that, as the extension and deadline was part of the legislation introducing the new State Pension, and so it would require further legislation to extend it. Some on these boards have reported that HMRC have said recently that they will consider late submissions on an individual case by case basis, but I think legally their hands are largely tied as to what they can do,

frustrateddotcodotuk

Thanks p00hsticks , I am a little wary of sending a cheque for 13 extra years at £824.2 a year, through the post.
I am sure you are right about the legality of the deadline and the new state pension introduction

p00hsticks

frustrateddotcodotuk said:

Thanks p00hsticks , I am a little wary of sending a cheque for 13 extra years at £824.2 a year, through the post.
I am sure you are right about the legality of the deadline and the new state pension introduction

How confident are you that all 13 of those years will increase your pension ?

pinnks

I took a peek at the legislation yesterday - the date is hardwired into some 2013 regulation.  Not impossible to change that, even at this late date but highly unlikely given the processes involved.  More likely that HMRC treat this issue like many others.  As long as you have reasonable evidence that you had started the process by the deadline, then the fact they they have been unable to conclude things should not disadvantage you.

frustrateddotcodotuk

Thank you.
Reasonably confident but not as confident as I would have been if the letter outlining the info had arrived. 
When I last spoke to pensions service four days ago they said it had been sent on 6th February.
My NIC record on line states that I could pay the thirteen years in question. I have 22 qualifying years, up to retirement in 2021. Since then I have been receiving a reduced pension.
I know I paid no NIC in the those 13 years as I was either unemployed or working a few hours and so under the contribution threshold.
I know therefore I was not contracted out.
I am ineligible for pension credits.
I understand my income tax situation.
The above is what I am basing my confidence on.
I have read another thread on this forum copied from the HMRC ‘s apologetic thread on their forum..

xylophone

Have a look at the chart on page 6 here

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

Have you never been contracted out?

Your starting amount for NSP (at 6/4/16) was the higher of

Old Rules

22/30 (max) x £119.30 (Full Basic) +  (Additional State Pension. - (if applicable) Deduction for Contracting Our)

New Rules

22/35 x £155.65 (Full NSP) - (if applicable ) Contracted Out Pension Equivalent.

Qualifying years from 6/4/16 up to the year before the one in which you reached SPA would have improved your "starting amount".

molerat

Someone here posted one of those letters, totally unintelligible. Gave lots of options to pay, some of which, when you drilled into the detail, advocated paying for years which added £0.00 and 10p to the pension for a full priced year.  In all of the tables it did not in fact show the cheapest option.

If you would like to post up some details, nothing identifiable, someone will sense check your thoughts.

Current pension £ amount being paid
Number of pre 2016 years full
Number of post 2016 years full
Financial year you reached state retirement
Years which show not full

OldBeanz

HMG have also paid back money to those who paid extra for no benefit.
Either send the cheque or phone HMRC the moment they are open. Go through the menus until on hold then put the hands free speaker on and go about your daily business until they answer.

frustrateddotcodotuk

Thanks molerat.

molerat said:

Someone here posted one of those letters, totally unintelligible. Gave lots of options to pay, some of which, when you drilled into the detail, advocated paying for years which added £0.00 and 10p to the pension for a full priced year.  In all of the tables it did not in fact show the cheapest option.

If you would like to post up some details, nothing identifiable, someone will sense check your thoughts.

Current pension £ amount being paid
Number of pre 2016 years full
Number of post 2016 years full
Financial year you reached state retirement
Years which show not full

The details are
£116.39pw
22 full yrs pre 2016
0 full years post 2016
20-21 pension commenced
1999-2019 years not full.
Hope this helps

molerat

It looks like there are no booby traps there and any available year can be purchased, not limited to the 30 pre 2016 catch. 13 years to get the max at £5.29 pw.