motorcycle_mayhem
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| posted on 15/2/23 at 10:14 AM |
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Missed Class 3 NIC's - Voluntary Payment
Given that the FPC and HMRC are simply not fit for purpose, if you want to ask a question (or do anything that requires they commit resource to it).
Has anyone here got the answers to a couple of questions I have, OK...
Let's say that current cost of filling 2020-2021 with voluntary Class 3 NIC's is £795. Those for 2021-2022 are £800. IF I delay the
prospective payment of these until I'm nearer retirement age (it will be under the 6 years review), does the cost increase? I.e. if I leave it
until 2025, will I still pay £795 and £800?
What's the situation with these voluntary Class 3 NIC's going forward, are they due to increase by inflation or by Blubberment policy? Can I
count on 2023-2024 and 2024-2025 being a similar cost, or is the feeling/situation that these will increase?
Hoping someone on here can help, more fit for purpose than the 'service'.
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gremlin1234
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| posted on 15/2/23 at 11:20 AM |
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yes they will increase in price over the years, but I don't think the amount is yet fixed.
the thing to do now is: check through their records to see if there are any from before 2016,
these can be topped up now but not after 6 april, after that you will only be able to go back 6 years.
you can also see any partially paid years, and these are cheaper to top up.
you would then need to phone the future pensions centre, and get an 18 digit reference.
this reference is then entered on the hmrc website...
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nick205
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| posted on 15/2/23 at 11:24 AM |
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I can't answer your questions, but do sympathise that trying to deal with HMRC is a task in itself.
From personal experience I've found writting to them and posting it using "Signed For" ensures they get your communication. They do
actually respond to written communication as well. Doing it this way gets answers and ensures everything is documented for future reference.
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tilly819
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| posted on 15/2/23 at 11:27 AM |
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Firstly.. I'm not in any way qualified to give financial advice...
I don't have the exact answer you are looking for however..
I did however look into this a while back when I went self employed. I'm still in my 30's so not too much of an issue yet but I had missed a
few years earlier in my carrier so was interested to see what was on my record.
A couple of big picture things hit me. The main one. In my opinion, It appears to be better to have the pot full and get the full pension in the long
run even if you contribute a couple more years than you technically have to.
I the long run taxes only go one way... Up.
(I'm assuming you are trying to just pay enough to get the minimum amount of qualifying years as the pension does not go up any more with
overpayments after 2016 IIRC)
The new state pension is something like £185 / week. If you have to pay £800 to catch up a year. That's roughly the same as 3 and a bit weeks
pension.
Lets say you draw your pension for 25 years. That's 25 years*52 weeks*£185=£240,500..... £800 is 0.3% of that.
If you are 1 year short of qualifying years you get £185/35years*34years of contributions = £179 / week £6/week less and over 25 years
£232,700
So over 25 years you are £7800 worse off for being 1 year short of you qualifying years.
Flip that over and if you survive 25 years after drawing your pension and pay £800 a year for additional qualifying years (more than the 35 you
need)
That's 9.75 years worth of £800 payments to be at the same £7800 deficit.
Personally I'd rather over pay slightly and guarantee the full pot than risk being even one year short. That's what I plan to do. But by the
time I get there there probably wont even be a pension.
Again.. This is my opinion, I have no financial training or qualifications there are probably things I don't know and have not taken into
account. Ether way I hope this helps.
Cheers, Tilly
F20C Haynes roadster 440 BHP/Tonne www.youtube.com/handmadeextreme
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motorcycle_mayhem
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| posted on 17/2/23 at 10:01 AM |
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Thanks for the input, feedback from here and other sources suggest that the cost of doing this sort of thing will only increase. That's the
answer I was looking for.
We're all different, we all have completely different circumstances, even Professional advice can't bring in and weight our (my) objectives
to taste.
I've been postdoc'ing around the world in my earlier years, joining failed UK Biotech companies in my latter years. I need a few NIC years
back to make the 30 years required for £185.15 a week (£805.07/mnth, 9,660.86/yr). My appeal to employers in the UK basically ended at 60, after being
viewed clinically dead at 55, it's very sad.
I'm with Tilly, makes far too much sense to splash the cash to get those last weekly increments, which is what I'm going to do. I don't
think Cancer has got to me yet, my heart is still pumping. Yes, I ache, things don't work the way they did. I get very tired. At the end of a
race meeting, I can barely walk...
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gremlin1234
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| posted on 17/2/23 at 10:25 AM |
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quote:
I need a few NIC years back to make the 30 years required for £185.15 a week
I think you now need 35 years of contributions to get the full amount.
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nick205
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| posted on 23/2/23 at 01:17 PM |
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quote:
Originally posted by gremlin1234
quote:
I need a few NIC years back to make the 30 years required for £185.15 a week
I think you now need 35 years of contributions to get the full amount.
I think you're right with 35 years now.
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gremlin1234
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| posted on 7/3/23 at 07:56 PM |
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https://www.lancs.live/news/cost-of-living/dwp-10000-state-pension-boost-26404294?int_source=amp_continue_reading&int_medium=amp&int_campaign=
continue_reading_button#amp-readmore-target
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Neville Jones
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| posted on 8/3/23 at 08:30 AM |
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I was self employed for most of my working life here, and as my ex was an accountant, I trusted her to pay my NIC from the business account.
She took the money out every quarter, but where it went only she knows.
At retirement time, DWP contacted me to say I only had nine years contributions!!!!! I paid off ex's brothers bankruptcies I think.
Anyway, I contacted my MP, who gave it to his researchers. I asked them what would the situation be if I was a stay at home housewife all my life, and
my husband walked out on me on retirement day?
What came back was that I had to apply for Pension Credit. Initially, DWP wanted near to £12k, before I got any Govt.. Pension at all!!
( I got conflicting letters from three DWP offices. Belfast demanding money or no pension, Newcastle making suggestions and giving me a sliding scale
of how much pension for extra years paid., and Northampton giving me money and asking how they could further help!) AS far as I can make out, Belfast
still isn't aware that Northmpton is giving me payments. Same dept, different offices.
Pension Credit tops up your govt pension to max payable. This took some finding, but AGE UK helped as well.
I was awarded Pension Credit Guarantee Credit. I get the max.
The upside of the Guaranteed Credit, is that I get ALL the extra payments, and a lot of extra benefits and exemptions. Worth well over £1k a year.
The Pension Credit took ten months to come through, and was backpaid to application date.
I near fell over to see near to £8k paid into my account. I thought it was a mistake, and rang them to verify the situation. Get as much out in
cash/spend to get your bank balance under £5k, so it doesn't affect a lot of the extra benefits.
Work the system to your advantage, and don't be timid about putting your MP's staff to work.
That Credit Guarantee is the bit to have, as it exempts you from Council Tax, among other things.
Next is a Blue Badge
[Edited on 8/3/23 by Neville Jones]
[Edited on 8/3/23 by Neville Jones]
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gremlin1234
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| posted on 8/3/23 at 04:36 PM |
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People have been given more time to plug gaps in their National Insurance record - to ensure they can maximise their state pension entitlement.
Initially, people had until 5 April to make voluntary adjustments for gaps between 2006 and 2016, but the cut off has been extended to the end of
July.
The original deadline had led to blocked phone lines.
In general, people need 35 years of qualifying contributions to get the full state pension.
https://www.bbc.co.uk/news/business-64881745
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Neville Jones
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| posted on 8/3/23 at 06:42 PM |
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Gremlin, did you read that BBC article?
It mentions applying for other benefits.
As soon as you apply for your state pension, get an application in for Pension Credit.
I could have scraped the money together and paid what Belfast was demanding, but when everything was looked at, the numbers didn't make sense.
Don't get yourself stirred up about this. If you haven't got enough years, then Pension Credit will make it up. That's what it's
there for.
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gremlin1234
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| posted on 8/3/23 at 06:51 PM |
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quote:
Originally posted by Neville Jones
Gremlin, did you read that BBC article?
It mentions applying for other benefits.
As soon as you apply for your state pension, get an application in for Pension Credit.
I could have scraped the money together and paid what Belfast was demanding, but when everything was looked at, the numbers didn't make sense.
Don't get yourself stirred up about this. If you haven't got enough years, then Pension Credit will make it up. That's what it's
there for.
but if you have other pensions, or savings. they wont give you pensions credit. its a minefield
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