About to pay voluntary UK national insurance contributions

Making one-off payment for Class 2 NICs

I made a lump sum payment at the end of May for 16years Class 2 NICs. Just rang HMRC in UK, they have received the payment, but it has not been allocated to my account. The chap I spoke to, said he would send a note to an "International Caseworker" in HMRC, who would do the allocation, apparently this would normally be marked as a "priority". A letter confirming the allocation should be sent to me when this is done. He was unable to give a time line for likely completion.

Just posting this here, as it may be helpful for people to chase their case. I rang 0044 191 203 7010
 
Be prepared to contact HMRC multiple times to get this done.

It was an efficient service but since March 2020, the service has effectively stopped-no letter inviting a voluntary contribution, payment not allocated and no receipt for payment.

I've had to call them repeatedly to get all of the above-mentioned carried out in recent times.
 
I just received a reply today from HMRC which is 19 weeks after sending off my CF83 form enquiring about paying voluntary
NI contributions. So anyway they have told me I can purchase 11 years class 2 NICs and 5 mixed class 2/3 Nics. The class 2 NICs
come to £1636 and the mixed class 2/3 comes to £3168.50. I already have 15 years so I am thinking of buying just the class 2 NICs
that will give me 26 years and pay annually until retirement age which should take me more or less to 35 years contributions.

Does this sound like the best plan and if so can someone let me know the best and easiest way to pay the lump sum for the class 2 NIC's ?
 
I did similar to this, only buying the class 2 years. and buying a voluntarily contribution annually- I’m now at 32 years.
I opted out of SERPS years ago so my contribution period will be 37 years for a full UK state pension so it’s worth checking this.
 
Knowledgequest said:
Does this sound like the best plan and if so can someone let me know the best and easiest way to pay the lump sum for the class 2 NIC's ?
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Does the letter not state how to pay?

From memory there is an IBAN and you have to quote your NI number and something else in the narrative.
 
I would agree, receipting payments by HMRC is a bit haphazard. It seems they do not rank it as a priority. If you ring the NI Helpline (0044 191 2037010) they can confirm receipt of the payment verbally.

I think though if you give it 3 - 4 months after making your payment, then apply to the DWP in Wolverhampton for an updated State Pension Forecast and when you get it, it should confirm a higher UK state pension benefit corresponding to the additional years you have purchased.

I am up to 18 qualifying years at this stage and still have 6 - 7 historic years to pay before April 2023. It is not bad from a 4.5 year spell working there back in the 90s
 
Reactions: jim
Thanks for the information Yam1960, so what is the best method of payment ? is it to request a sterling transfer through my bank
to the HMRC account ?

There were no payment options in the letter that detailed what Class 2 NIC's I could purchase.
 
Knowledgequest said:
Thanks for the information Yam1960, so what is the best method of payment ? is it to request a sterling transfer through my bank
to the HMRC account ?

There were no payment options in the letter that detailed what Class 2 NIC's I could purchase.
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I made paymwnt from my stg revolut a/c to the iban they provide referencing my NI number
 
jfrank said:
I would agree, receipting payments by HMRC is a bit haphazard. It seems they do not rank it as a priority. If you ring the NI Helpline (0044 191 2037010) they can confirm receipt of the payment verbally.
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Every time I make a payment I write them a letter saying what year it relates to and what my NI number is and attach the details of the credit transfer.

I usually get confirmation about two months later.

In my experience they don't make mistakes, they are just very, very slow. They know this stuff is not at all time critical for most people and it gets low priority.
 
I made payments in May and last week to cover 3 years of outstanding NIC payments to bring my records upto 35 years paid.

I was informed that the workload of processing these payments can take upto 12 months.

Good job I'm not in a hurry as I'm 61 next month and can't get paid till 2028 anyway!
 
HMRC VC Payment details:

Sort code: 20-20-48
Account number: 30944793
Company name: GBS Re NICO Receipts HMRC

Include this reference: Your NI number followed by "IC", your surname and initial (no spaces, all capitals)

I have used this method for EFTs for several years without issue.
 
NoRegretsCoyote said:
Download form NI38 and send off the form at the end.

You won't get a quick reply so start straight away!
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They certainly are not quick in replying. I sent my NI38 in early June and have only got a reply now in mid October. The letter said to phone the Future Pensions people to check whether my pension forecast would increase as a result of voluntary NIC payments. I did that and was told that due to a change in legislation only contributions for years 2016 onward would increase my pension forecast.
 
cwc456 said:
......I did that and was told that due to a change in legislation only contributions for years 2016 onward would increase my pension forecast.
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Anyone know what this means? What changes have there been to the legislation? How could increasing the number of years not increase one's pension expectation (assuming that total years are less than the max)?
 
jasdpace@gmail. said:
Anyone know what this means? What changes have there been to the legislation? How could increasing the number of years not increase one's pension expectation (assuming that total years are less than the max)?
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That’s the change that comes into effect in April next year.

At present you can go back to 2005 but from next April you will be restricted to just 6 years. It’s all in my post

Marc Westlake CFP, TEP, EFP, APFS on LinkedIn: Cookies on GOV.UK

This really isn’t getting the attention it deserves. How many people in Ireland today will have worked at least 3 years in the U.K.? A huge opportunity for…
www.linkedin.com
 
Thanks Marc......this is the second time in as many weeks that someone has said this and I just wanted to be sure to be sure (.....or does saying to be sure to be sure immediately disqualify me from a UK pension?)
 
That is my read of it too Coyote, HMRC regard NICs as the poor cousin compared to the other taxes and definitely receipting NIC payments is well down their priorities.... just give them a few months after payment and then apply for an updated State Pension Forecast (Form BR19) and that should confirm they have allocated your payment.
 
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