Paying class 3 National Insurance top up for short years

BeauJ38

Hi

I'm 62 and have received a letter from HRMC (a miracle in itself as contacting them by phone is impossible) and they've listed 5 years where my NI contributions are short. Two of those years I'm only just short so it makes sense to pay the extra. However when I try to pay via the HMRC website there does not seem to be anyway I can specify the exact years I want to pay for, in my case 2011/12 and 2015/16.  If I pay them a lump sum covering those two years how do I know if the money will be specifically allocated to complete those years? I have a few other years where I'm short. I have completed 35 full years and so just wish to complete another 2 which I believe will raise my pension due in 2027 by about £10 a week.

Any help would be much appreciated.

Best regards

Bob J

molerat

You need to call the NI helpline to get a payment code which will be linked to the years. But who gave you those years and did they specifically state they would increase your pension? Do you have your forecast? If so what exactly does it show?

xylophone

Molerat posted helpful list below in a reply to another member.


Which years did you buy ?

Have you got a copy of the old forecast ?

If you post up the full details from your forecast we can have a look

Current £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

p00hsticks

BeauJ38 said:

I have completed 35 full years and so just wish to complete another 2 which I believe will raise my pension due in 2027 by about £10 a week.

The devil is in the detail - pre-2016 years may or may not boost your pension amount. To be able to say if they will or not in your particular case , you first need to give more details as requested by molerat and xylophone.

BeauJ38

molerat said:

You need to call the NI helpline to get a payment code which will be linked to the years. But who gave you those years and did they specifically state they would increase your pension? Do you have your forecast? If so what exactly does it show?

Sorry I should have stated the HMRC letter was a reply to my letter asking about paying Class 3 contributions to complete 2011/12, 2012/13,2013/14,2015/16 and 2020/21 and I do have the payment code. The letter advises me to call the Future Pension Centre on 0800 731 0175 but it's pointless. When you call the voice recording even says you may get disconnected whilst waiting and seconds later you always are.

My current forecast is £171.11 a week so I need to continue to contribute etc. I retired in 2016 and have been living by drawing down from my pension each month. If I add 2 more years making 37 full years I believe that'll get me another £10 a week. Those extra 2 years will o nly cost me £237.

BeauJ38

xylophone said:

Molerat posted helpful list below in a reply to another member.


Which years did you buy ?

Have you got a copy of the old forecast ?

If you post up the full details from your forecast we can have a look

Current £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

I haven't bought any extra years yet.I intend adding 2 years.

I have 34 full years pre 2016

I have 1 full year post 2016

I reach retirement in 2026/27

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £29.96 a week

My forecast:-

Estimate based on your National Insurance record up to 5 April 2022

£171.11 a week

Forecast if you contribute until 5 April 2027

£200.23 a week

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

£203.85 a week

Your forecast may be different if there are any changes to your National Insurance information. 

You’ve been in a contracted-out pension scheme

p00hsticks

With 34 years pre-2016, then buying at least one of those years 2011/12 and 2015/16, and possibly both, is going to be a waste of money and won;t increase your pension amount - this is why HMRC tell you to speak to the Future Pension Centre. 

molerat

Nether of those pre 2016 years will add to your pension- you must not buy them.  You need to speak to FPC to get a quote for which years to buy. You need 6 to reach £203.85, 5 will take you to £200.23 at £5.82 per year and the 6th will add the final £3.62.  All year must come from 2016-17 and later.

MallyGirl

molerat said:

Nether of those pre 2016 years will add to your pension- you must not buy them.  You need to speak to FPC to get a quote for which years to buy. You need 6 to reach £203.85, 5 will take you to £200.23 at £5082 per year and the 6th will add the final £3.62.  All year must come from 2016-17 and later.

£5082 in total?

molerat

MallyGirl said:

molerat said:

Nether of those pre 2016 years will add to your pension- you must not buy them.  You need to speak to FPC to get a quote for which years to buy. You need 6 to reach £203.85, 5 will take you to £200.23 at £5082 per year and the 6th will add the final £3.62.  All year must come from 2016-17 and later.

£5082 in total?

No, £5.82 per year

BeauJ38

Many thanks to all who responded. Impossbile to get through to HMRC by phone so this has helped a lot,