NI top-up update
Discussion
Yes, that small but thorny subject that won't lie down...
We know that in the wake of the Martin Lewis programme about making contributions for empty years to get a full state pension, the HMRC system jammed. Nobody could top-up their contributions and the deadline (by which you can go back more than six years) was extended a couple of times. Obviously the further you can go back, the cheaper the years are to fill.
Whilst hunting around for the latest date, slightly to my surprise I found it: https://www.gov.uk/government/news/deadline-for-vo...
In summary: 'Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006'
I wonder if by then it will be easier to (a) quantify the exact amount required to gain a full state pension, (b) provide an easy way to pay - such as a 'pay now' button?
We know that in the wake of the Martin Lewis programme about making contributions for empty years to get a full state pension, the HMRC system jammed. Nobody could top-up their contributions and the deadline (by which you can go back more than six years) was extended a couple of times. Obviously the further you can go back, the cheaper the years are to fill.
Whilst hunting around for the latest date, slightly to my surprise I found it: https://www.gov.uk/government/news/deadline-for-vo...
In summary: 'Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006'
I wonder if by then it will be easier to (a) quantify the exact amount required to gain a full state pension, (b) provide an easy way to pay - such as a 'pay now' button?
This is useful as I have a couple of years where it says...
"Year is not full. View 2016 to 2017 details
We are checking this year to see if it counts towards your pension.
We’ll update your record when this is finished, you do not need to do anything."
It's been saying that for the last few couple of years!!
How long does it take. I'm sure I paid contributions during that time.
What will happen if I don't do anything???
Yes the pay any arrears button would be very useful.
It does say that feature is coming soon!
"You can soon use your Personal Tax Account to check if you can make voluntary National Insurance contributions, and pay using the online service."
"Year is not full. View 2016 to 2017 details
We are checking this year to see if it counts towards your pension.
We’ll update your record when this is finished, you do not need to do anything."
It's been saying that for the last few couple of years!!
How long does it take. I'm sure I paid contributions during that time.
What will happen if I don't do anything???
Yes the pay any arrears button would be very useful.
It does say that feature is coming soon!
"You can soon use your Personal Tax Account to check if you can make voluntary National Insurance contributions, and pay using the online service."
peterperkins said:
This is useful as I have a couple of years where it says...
"Year is not full. View 2016 to 2017 details
We are checking this year to see if it counts towards your pension.
We’ll update your record when this is finished, you do not need to do anything."
It's been saying that for the last few couple of years!!
How long does it take. I'm sure I paid contributions during that time.
What will happen if I don't do anything???
The system is/was very good at telling you how many empty or part-filled years you had. The nigh-impossible task was finding out how much to pay and how to pay it. "Year is not full. View 2016 to 2017 details
We are checking this year to see if it counts towards your pension.
We’ll update your record when this is finished, you do not need to do anything."
It's been saying that for the last few couple of years!!
How long does it take. I'm sure I paid contributions during that time.
What will happen if I don't do anything???
If you don't have enough qualifying years you won't get the full state pension - see 'pension forecast' which will tell you how much per week you'll get. Then do the maths as to whether it's worth making the investment versus the likely return.
peterperkins said:
That's great but how the hell do you find out how much to pay and where to ensure your record is updated!!
I think it's a case of 'work in progress'. The important thing IMHO is that the time pressure is off (for now).If anyone does stumble upon the shiny new system before April 2025, could they post the link here please...?
Now that the pressure is off in terms of timing, I think it has been easier to get through.
I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
leef44 said:
Now that the pressure is off in terms of timing, I think it has been easier to get through.
I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
If you decide to do this, it’s probably best to pay either via a bank giro slip or via a card if possible. My Mrs paid a small back contribution via bank transfer a few years ago to get full maternity allowance, but it didn’t reach the appropriate bit of HMRC and never bounced back to her account. HMRC were supposed to be tracing it but we never heard any more. The second payment was made in cash via a giro to ensure we got a receipt and that made it ok.I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
Click here to accept cookies.
Now click here to close the cookies notification.
The only way I managed to sort this out was to phone them up (the general number) and keep asking different people until
Click here to accept cookies.
Now click here to close the cookies notification.
I finally found someone who could go through everything in detail.
Click here to accept cookies.
Now click here to close the cookies notification.
It was ridiculously badly designed BUT the person I finally spoke to was actually really helpful.
Click here to accept cookies.
Now click here to close the cookies notification.
Yours, Fus
tsu
Now click here to close the cookies notification.
The only way I managed to sort this out was to phone them up (the general number) and keep asking different people until
Click here to accept cookies.
Now click here to close the cookies notification.
I finally found someone who could go through everything in detail.
Click here to accept cookies.
Now click here to close the cookies notification.
It was ridiculously badly designed BUT the person I finally spoke to was actually really helpful.
Click here to accept cookies.
Now click here to close the cookies notification.
Yours, Fus
tsuIt is shocking how inefficient they can get away with being. I sent in the form to switch from (I think) class 1 to class 2 for the back payments - it may be the other way around but the lower of the two. It is currently taking them an estimated 10 months to open the post!.
If any business were as inefficient as HMRC they would go bust in no time and all customers would go elsewhere. Yes as its HMRC we all just accept it. I left the UK a few years ago and live in Ireland now. Here calls are answers in a few minutes, issues are dealt with real time and payments are all digital so show up instantly.
If any business were as inefficient as HMRC they would go bust in no time and all customers would go elsewhere. Yes as its HMRC we all just accept it. I left the UK a few years ago and live in Ireland now. Here calls are answers in a few minutes, issues are dealt with real time and payments are all digital so show up instantly.
Jonathan27 said:
It is shocking how inefficient they can get away with being. I sent in the form to switch from (I think) class 1 to class 2 for the back payments - it may be the other way around but the lower of the two.
My understanding of it is: Class 1 is for employees, Class 2 is for self-employed. Class 3 is voluntary, Class 4 is tax on self-employed profit (any experts feel free to correct). How did you manage to switch to 'lower' payments?Jonathan27 said:
If any business were as inefficient as HMRC they would go bust in no time and all customers would go elsewhere. Yes as its HMRC we all just accept it. I left the UK a few years ago and live in Ireland now. Here calls are answers in a few minutes, issues are dealt with real time and payments are all digital so show up instantly.
But only 3 people live there...alangla said:
leef44 said:
Now that the pressure is off in terms of timing, I think it has been easier to get through.
I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
If you decide to do this, it’s probably best to pay either via a bank giro slip or via a card if possible. My Mrs paid a small back contribution via bank transfer a few years ago to get full maternity allowance, but it didn’t reach the appropriate bit of HMRC and never bounced back to her account. HMRC were supposed to be tracing it but we never heard any more. The second payment was made in cash via a giro to ensure we got a receipt and that made it ok.I called the Future Pension Centre in mid December and got through in about ten minutes. They've sorted me out with a payment reference number and the amount to fill the gaps.
The bit I don't like is that there is no text or email confirmation so that you don't have any written evidence. You then have to trust faith to make the payment and call them back after a couple of weeks to confirm that the payment has been checked in and will be processed within the next six weeks.
How do you make a payment via giro? Is it just a matter of going to your bank and asking them to pay to HMRC from your bank account or do you need to ask HMRC for a giro slip first?
In theory, NI contributions paid whilst living overseas are at the Class 2 rate if you are "employed or self employed".
After a good few months I managed to get the majority of my contributions at the Class 2 rate, and the rest as Class 1 (as I have lived in NZ since 2000). I worked out the "extra" payments I made (a couple of thousand) would soon be recouped in payments to me. Took me up to 29 qualifying years (13 plus 16)
I paid everything and claimed a state pension on November 15th (last year), as I was nine months past my 66th birthday and...nothing.
Apparently they "hope" to start paying by the middle of February.
What are you supposed to do if you are going to rely on a state pension for income? Three months processing time seems excessive.
caziques said:
I paid everything and claimed a state pension on November 15th (last year), as I was nine months past my 66th birthday and...nothing.
Apparently they "hope" to start paying by the middle of February.
What are you supposed to do if you are going to rely on a state pension for income? Three months processing time seems excessive
Sorry, the UK is a bit skint at the moment. Do you have a NZ pension to use in the meantime?Apparently they "hope" to start paying by the middle of February.
What are you supposed to do if you are going to rely on a state pension for income? Three months processing time seems excessive
Gassing Station | Finance | Top of Page | What's New | My Stuff