Voluntary Contributions for the tax year in which I reach State Pension Age?

Suffolk_lass

I understand that there is a flexible deployment approach so that, very much like Border Force do with immigration front-line deployment in busy holiday periods and strike action, HMRC have a number of tier 1 call handlers trained, who are sucked from their regular jobs to top up help-lines in busy periods. They certainly do/did this for the self assessment deadline.

I know HMRC are receiving lots of calls despite the deadline for 2006-2016 being deferred to 2025 - my imperative was to avoid two of the years I wanted to pay for, from slipping into the 2023-4 rate, which happens from 1 August. 

I used to be a public sector worker and it isn't easy. Especially so, I imagine, post covid. And especially doing front-line customer engagement, where lots of people are not sure what they are asking for.  I think it is tempting for someone to want to be helpful, but as you suggest, this probably isn't their core skill set. 

Personally I am glad I did not also have to call the Future Pensions Centre. Pride may come before a fall but I had looked into mine before I gave up work and I was clear I would gain by paying for these final four years. What I missed, was the change in rate, which was uplifted to this year's rate from last August, for the 2019-20 year. It will still pay for itself in a little over three years (assuming I don't die before that!). Concerned that I may have missed this too, I asked my questions. 

Many thanks

molerat

know HMRC are receiving lots of calls despite the deadline for 2006-2016 being deferred to 2025 - my imperative was to avoid two of the years I wanted to pay for, from slipping into the 2023-4 rate, which happens from 1 August.

There are no past years increasing in August.  As far as past years are concerned April 5th 2023, which was originally pushed back to 31 July 2023, (and seemingly April 5th 2024) is now effectively pushed back to April 5th 2025.

Suffolk_lass

molerat said:

know HMRC are receiving lots of calls despite the deadline for 2006-2016 being deferred to 2025 - my imperative was to avoid two of the years I wanted to pay for, from slipping into the 2023-4 rate, which happens from 1 August.

There are no past years increasing in August.  As far as past years are concerned April 5th 2023, which was originally pushed back to 31 July 2023, (and seemingly April 5th 2024) is now effectively pushed back to April 5th 2025.

My understanding is that the Class 3 voluntary contribution rate for the 20-21 year will increase to reflect this year's rate on 1st August; from £795.60 to £824.20, even if there is no increase in the rate of contributions for this year (which is what I think you are referencing). I am happy to be told I have this wrong but for me, it is irrelevant as I paid mine this morning.

Dazed_and_C0nfused

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

Silvertabby

Dazed_and_C0nfused said:

Suffolk_lass said:

It was HMRC. He told me that he has done it for lots of people  . 

Then that's going to lots of extremely disappointed people.

but then he told me I could increase my state pension if I also pay for the 23-24 tax year. I will reach state pension age in March 2024

My guess is that, knowing that NI is payable (if you work/earn enough) right up to the day before SPA, he just got confused.

Yes, could be many unhappy people out there.

pinnks

Dazed_and_C0nfused said:

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

Thanks for posting that link as elsewhere on GOV UK and the App the message is more confusing (or was last time I looked).  This particular text is crystal clear

molerat

Dazed_and_C0nfused said:

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

And it goes on to say, just to help add to the confusion

If you’re a man born after 5 April 1951 or a woman born after 5 April 1953

You may be able to pay voluntary contributions by 5 April 2025 to make up for gaps between 6 April 2006 and 5 April 2016. Check if you’re eligible.

You’ll pay the rates for the 2022 to 2023 tax year. The rates are:

• £3.15 a week for Class 2
• £15.85 a week for Class 3

jem16

Dazed_and_C0nfused said:

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

So does that also apply to the tax year 2021/22 which is normally held at the 2021/22 price until April 2024?

Dazed_and_C0nfused

jem16 said:

Dazed_and_C0nfused said:

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

So does that also apply to the tax year 2021/22 which is normally held at the 2021/22 price until April 2024?

That's how I'm reading it yes.

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023

jem16

Dazed_and_C0nfused said:

jem16 said:

Dazed_and_C0nfused said:

Per gov.uk

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year:

Class 2 rates

Class 3 rates

After 5 April 2025, you may have to pay higher rates or be ineligible to pay. Find out more about how and when to pay.

https://www.gov.uk/voluntary-national-insurance-contributions/rates

So does that also apply to the tax year 2021/22 which is normally held at the 2021/22 price until April 2024?

That's how I'm reading it yes.

If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023

Yes it’s how I read it too but I’m not convinced it’s correct and if it is that’s not good.