NI Top Up Deadline Extended To 5th April 2025

DFS123

I need to top up with 7 years of NICs before April 2025 to get the max state pension starting October 2027 and this will cost me over £5k (I have my HMRC reference number). I should get my money back in 4 years when taking account of the increased amount of tax I will pay so I need to live until I am 72 to justify what is essentially a gamble on my longevity. That said, we now have a new labour government with new ideas who are blaming the conservatives for the huge budget shortfall and appear to be planning to address it by making benefit cuts first rather than increase taxes. Rachel Reeves has an advisor that has allegedly inferred in comments that the state pension should be means tested like in Australia. It sounds like the birth of another of her ill advised money making schemes, like getting rid of the winter fuel payments for most, that will make everyone worse off in the long run, as they will only waste the money elsewhere. Until now I have agreed with MSE that making those voluntary contributions was a safe bet, a "no brainer" if you will, assuming I live beyond 72. Now I am left wondering whether I should still make those contributions to top up a state pension I may not see in part, or indeed at all, because I also contributed for 30 years to a private pension, and if that proved to be the case, then I very much doubt that the HMRC would return all the AVCs that have been paid over the last 20-30 years including mine, any views/comments on this dilemma would be appreciated?

molerat

Once again pure speculation on what might or might not happen.  Means testing of SP is not something that can be brought in quickly, it would take several years, and it would not be retrospective - they want to stay in power for more than one term !

pinnks

I agree.  I would think something as significant as that would need public consultation, would likely face massive backbench revolt(s), not to mention being amended by the Lords.  And, it would almost certainly fall within the commitment by all parties to give at least 10 years notice of changes to the system.

Darset

I retired this year and would like to top up my N I missing years, I know it is not available to do online at the moment if you have already retired, but does anyone know when I will be able to top up online?  I have tried all the phone numbers and they either cut me off or send me to another number, none of which have a human at the end of them, and I have hung on for almost an hour,  is this something that Labour are going to stop by any chance?

molerat

Once you have reached state retirement topping up is a manual process.  You need to contact TPS, preferably by phone as written requests are taking over 6 months to open, who will reply by post after several months.  You then speak to HMRC who will issue you with a code to pay.  You pay, your NI record is updated after a few weeks and the data is passed to DWP who work out the new pension taking up to a year for your new pension amount to come into payment.

The alternative is that you work it out for yourself, it is quite straightforward and many on here will offer help, and either send a cheque in the post and wait for it all to go through or phone up and convince HMRC you have received DWP advice on what to pay.

I doubt it will ever be offered on line as it is more complex than doing it prior to retirement.

This is who you should be contacting in the first instance https://www.gov.uk/contact-pension-service

MikeyPGT

molerat said:

Once you have reached state retirement topping up is a manual process.  You need to contact TPS, preferably by phone as written requests are taking over 6 months to open, who will reply by post after several months.  You then speak to HMRC who will issue you with a code to pay.  You pay, your NI record is updated after a few weeks and the data is passed to DWP who work out the new pension taking up to a year for your new pension amount to come into payment.

The alternative is that you work it out for yourself, it is quite straightforward and many on here will offer help, and either send a cheque in the post and wait for it all to go through or phone up and convince HMRC you have received DWP advice on what to pay.

I doubt it will ever be offered on line as it is more complex than doing it prior to retirement.

This is who you should be contacting in the first instance https://www.gov.uk/contact-pension-service

Interesting - I already know that I will be 5 years short of a full pension when I reach 66 and a bit in 2027.  I'm unlikely to have the readies to make up 4 of the missing years before hitting pension age, but already have the prices and a payment reference.  When I start getting the pension - and a bit more cash to play with - would I be able to use the info I have and the payment number to top up?

molerat

There are mixed views on whether the payment reference is valid outside the tax year it is issued in.

Silverbullet036

Thought i'd post up about my experience of topping up my wife's pension this week. We called on Monday to get a code so that we could pay online for 1 year that was a small amount to top up. Got through within 5 minutes and the gentleman was very helpful although we knew what we needed to do anyway.

Payment reference was given for the amount and year we wanted to pay. Sent the payment through straight after finishing the phone call and checked her NI record this morning. The year in question is now showing as full so within a week its all gone through and sorted. I'd say that was extremely satisfactory and well done HMRC for an efficient service

molerat

Only 4 weeks to go.  

If you need to pay for years you need to get a call back booked, you are unlikely to get through to speak to anyone.

Request a call back to pay voluntary National Insurance contributions - GOV.UK

If you submit a request by the 5 April 2025 deadline, you will still be able to pay voluntary National Insurance contributions after the deadline has passed.

You could try the on line tool.

Log in to your on line tax account, click Your National Insurance and State Pension / View your National Insurance record / View payable gaps / Check if you can pay for gaps on line. 

This will give options, prices and the effect on your pension but this tool may not be available to all.

molerat

From another post on here it would seem actually getting through on the phone is no better than filling in the on line form.  The call handlers just seem to be taking details and passing them on, they don't seem to have any ability to actually handle your enquiry themselves.