Is it advisable to pay NI contributions for pension shortfall in instalments?

SimonFF

As explained in my previous thread "Would you pay £800 to get an extra year to make up for State Pension?", one of my shortfall years requires that I pay exactly £775.65.

Although I do have the money, I also would like to pay in instalments if possible. And here comes the confusion. I asked the operator on the HMRC chatline if paying in instalments was possible and they said that this is categorically not possible. They said I had the call the NI contribution helpline, which I did the day later.

The operator at the HMRC told me that paying in instalments  "is possible but not recommended". I insisted in asking why this is not recommended and she said it was "because this can confuse the system" but if I really wanted to do so, at my own risk, she would give me instructions.

So she gave 3 different references for the three years and she told me that I could pay the highest sum (£775.65) in 7 instalments of exactly £110.95 each (110.95 * 7 = 776.65) and that was the only possible combination because it has to match the number of weeks of contribution or something like that.

Then she said I would receive a letter with all the instructions. I have just received the letter and it is quite confusing as it only states the amounts to pay and three references (not in a table so I have to assume they are in order of years), but no breakdown of instalments.

Like I said, I still would like to pay in instalments but I fear, like the lady on the phone said, this is going to "confuse the system" and that the payment are not going to show up.

Has anybody done it, of paying for a shortfall in instalments? Is there really a risk of "confusing the system"?

p00hsticks

The only time I have paid in installments is for the current tax year, where they let you set up a monthly direct debit.
I paid to fill back year gaps whole years at a time,

I wasn't aware of any option to pay for previous years in installments and personally it's not something i would risk trying to do. not only does it potentially add confusion and complication as the lady said, I can't see any real benefit of doing it that way.

If you can't afford (or don't want) to pay for a whole year straight away, why not save up until you can ? Partial payments will have no effect on your state pension unless and until the year is completely filled, and in the meantime surely the money is better off in your coffers that theirs ?

molerat

Unless it is a "new thing" paying past years is only available with a lump sum for each year.  Instalments, by direct debit, is only available for going forward years. I suppose you could make a part year payment though, X weeks x £yy.zz as appropriate for the year.  It would be possible as they misallocated my sil's payments and so she only got a part year.