Voluntary NIC to top up state pension

Confusedlad

My sympathy with all who - like I was for weeks - failing to get through to HMRC for advice on this topic and then receive advice.  Keep trying, an 18 digit reference number will be given to you when you speak to someone.

Armed with this number, HMRC sort code and account number (and amount to pay for the 4 years of NIC I was missing 2019/20 2020/21, 2021/22 and 2022/23 - around £3244), I am now left with the dilemma of how best to pay and when.  I reach SPA in April 2024.  Is there any advantage in paying this voluntary contribution asap (and before the 31 July when I was led to believe the amounts would increase).  Or is it best to wait, keep the money for 6 months and 'send' it (or most likely BACS it) early in the New Year.

I appreciate this is a fast moving situation with rules and dates seemingly changing by the week, but if anyone has any advice on the best way forward, having got the relevant details, I would be grateful.  Thanks.

p00hsticks

There's been a further extension so prices for the years in question won't now rise in July. 

In your shoes, I'd want to ensure that my NI record is completely up to date before DWP start calculating your State Pension amount. My understanding is that that is initially done before the invitation for you to claim it is sent out about four months prior to you reaching State Pension Age - so in your case around the end of this year (although I think they re-check it just prior to the first payment. .

I don't know how long it is currently taking HMRC to update peoples NI records once payment is received, but I think it best to allow a couple of months to see that the payment is processed and chase up if it isn't. So my personal opinion is - don't leave it longer than this autumn....    

pinnks

I just looked at my record and there is a box at the top telling people about the extended deadline and saying payments are taking about 8 weeks to show on your record...

Confusedlad

The box on the GG refers to years up to 2018.
If I click on more details on the 2019/20 & 2020/21 years below it still says prices will rise on 31 July 2023!

pinnks

That's interesting.  The text on GOV UK is equally confusing and on NIDirect even more confusing.  But the Ministerial Statement appears clear that all years up to 2022/23 stay at the current price until 2025 

Just looked at mine again and 2021/22 says £800.80 until 5 April 2024.

Have the draft regs been published yet?

molerat

Confusedlad said:

The box on the GG refers to years up to 2018.
If I click on more details on the 2019/20 & 2020/21 years below it still says prices will rise on 31 July 2023!

The box refers to any years that would expire before April 2025 so up to 2018 and is just a header note, easy to add to the web site.

The detail in the years remains at the original dates because that is more complex to change.

Suffolk_lass

@Confusedlad The first year you are intending paying for is now costing you £824.20 (assuming you are paying voluntary Class 3, like me), if you pay it before July. You may notice that
20-21 is less, at £795.60,
21-22 is £800.80 and
22-23 is £824.20.

In July, I am anticipating that the first two of these four years will increase to the 23-24 class 3 rate which, I think is £907.40 (52 x £17.45).

Although you can pay for the previous 6 years, only the most recent three will be at the rate for that year. Anything older will be at the current rate, which is applied in July

pinnks

molerat said:

Confusedlad said:

The box on the GG refers to years up to 2018.
If I click on more details on the 2019/20 & 2020/21 years below it still says prices will rise on 31 July 2023!

The box refers to any years that would expire before April 2025 so up to 2018 and is just a header note, easy to add to the web site.

The detail in the years remains at the original dates because that is more complex to change.

I am not sure it can be that complicated the date - they put the 31 July date in.

molerat

pinnks said:

molerat said:

Confusedlad said:

The box on the GG refers to years up to 2018.
If I click on more details on the 2019/20 & 2020/21 years below it still says prices will rise on 31 July 2023!

The box refers to any years that would expire before April 2025 so up to 2018 and is just a header note, easy to add to the web site.

The detail in the years remains at the original dates because that is more complex to change.

I am not sure it can be that complicated the date - they put the 31 July date in.

It took them a fair while to do it though

molerat

Suffolk_lass said:

@Confusedlad The first year you are intending paying for is now costing you £824.20 (assuming you are paying voluntary Class 3, like me), if you pay it before July. You may notice that
20-21 is less, at £795.60,
21-22 is £800.80 and
22-23 is £824.20.

In July, I am anticipating that the first two of these four years will increase to the 23-24 class 3 rate which, I think is £907.40 (52 x £17.45).

Although you can pay for the previous 6 years, only the most recent three will be at the rate for that year. Anything older will be at the current rate, which is applied in July

All years 2006-07 to 2021-22 will not be increasing in price (or cease to be available as applicable) until the new cut off date of 5 April 2025.

Confusedlad

Thanks to all who have contributed their views here.  Still being confused by the advice & opinions (that's why I'm a confusedlad! ), I decided to bite the bullet and called HMRC this morning. (I'd previously resisted doing this because of the wait times and the varying levels of knowledge of the call centre staff).

The advice I was given (and I recorded this) is that for me 'prices' for 2019/20 and 2020/21 WILL increase on 31 July 2023.  So if I delayed paying the 4 year 'total' (£3244.80) past the end of July 2023 then I would simply fall short of 'topping up'.  This is consistent with my GG which confirms prices for these 2 years "may increase after 31 July 2023".

So I guess it is in my interest to stump up the contribution to get it at the current prices rather than wait.

Clearly, from the very clear and strongly expressed views in response to my query, there remains some disagreement and confusion (and I agree the handling of the whole thing including communication from the Government has been far from perfect).  I guess I have least to lose by making the voluntary contribution 'earlier' rather than 'later' in the year. Which I will do early next month.