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Voluntary National Insurance contributions

Voluntary National Insurance contributions

Old Jul 13th 2016, 3:39 pm
  #31  
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Default Re: Voluntary National Insurance contributions

Originally Posted by Exp76
If you worked, even as a consultant ( my case BTW), you pay at Class 2 levels for those periods of employment. Otherwise its Class 3.
Thanks. As a practical matter, what are the relevant advantages/disadvantages of paying Class 2 or Class 3 contributions ? Does it make any difference in terms of potential benefits ?

Currently my thoughts take early social security form US , and over next few years catch up on my NI contributions- just trying to make sure I understand NI rules before I start paying in again.
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Old Jul 13th 2016, 8:18 pm
  #32  
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Default Re: Voluntary National Insurance contributions

I've been independent contractor for past 4 years. Would I pay Class II or Class III contributions? Big difference in the price..Thanks.
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Old Jul 14th 2016, 1:07 am
  #33  
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Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth
Thanks. As a practical matter, what are the relevant advantages/disadvantages of paying Class 2 or Class 3 contributions ? Does it make any difference in terms of potential benefits ?

Currently my thoughts take early social security form US , and over next few years catch up on my NI contributions- just trying to make sure I understand NI rules before I start paying in again.
No difference in benefits.
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Old Jul 14th 2016, 1:12 am
  #34  
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Default Re: Voluntary National Insurance contributions

Originally Posted by fulwood
I've been independent contractor for past 4 years. Would I pay Class II or Class III contributions? Big difference in the price..Thanks.
As long as you worked you get to pay Class II. When you apply for permission to pay contributions attach a detailed list of your work history. They'll want start and end dates for each job. In my case I just stated the years I worked as a consultant and they allowed to pay Class II. I paid Class III for the years after I stopped working.
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Old Jul 14th 2016, 2:15 am
  #35  
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Default Re: Voluntary National Insurance contributions

Originally Posted by Exp76
As long as you worked you get to pay Class II. When you apply for permission to pay contributions attach a detailed list of your work history. They'll want start and end dates for each job. In my case I just stated the years I worked as a consultant and they allowed to pay Class II. I paid Class III for the years after I stopped working.
of I am working as consultant overseas it is class 2 to pay, but 3 if I am not working ?
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Old Jul 14th 2016, 6:07 am
  #36  
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Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth
of I am working as consultant overseas it is class 2 to pay, but 3 if I am not working ?
That is correct.
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Old Jul 14th 2016, 12:37 pm
  #37  
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Default Re: Voluntary National Insurance contributions

Originally Posted by Exp76
That is correct.
Thank you.
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Old Jul 14th 2016, 6:11 pm
  #38  
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Default Re: Voluntary National Insurance contributions

Originally Posted by Quokka
No worries SoS. I would be grateful if you could let me know how you go. I have another 2 years to go before I can "put my feet up".
Quokka, I've posted a thread UK basic state pension when moving back from Australia
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Old Jul 14th 2016, 7:54 pm
  #39  
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Default Re: Voluntary National Insurance contributions

Hi I was under the impression their is NO class 2s anymore,they have stopped, just class 3 @ about 700 pa
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Old Jul 14th 2016, 8:13 pm
  #40  
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Default Re: Voluntary National Insurance contributions

Originally Posted by spouse of scouse
Quokka, I've posted a thread UK basic state pension when moving back from Australia
see the post to yours on the Australia thread, answered there

Your spouse is 66 years of age collecting state pension & I believe he is still eligible since he is under the old rules to pay 'up to 6 years worth of voluntary NIC' even if they are at class 3, the payback is still good.

You'd also get a category B pension based on his contributions which amounts to 60% of whatever he gets


https://www.gov.uk/voluntary-nationa...-contributions
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Old Jul 14th 2016, 8:30 pm
  #41  
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Default Re: Voluntary National Insurance contributions

from that link in post#40

https://www.gov.uk/voluntary-nationa...ions/deadlines

Deadlines

You can usually pay voluntary contributions for the past 6 years. The deadline is 5 April each year.

You can sometimes pay for gaps from more than 6 years ago, depending on your age.
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Old Jul 14th 2016, 8:41 pm
  #42  
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Default Re: Voluntary National Insurance contributions

Originally Posted by not2old
from that link in post#40

https://www.gov.uk/voluntary-nationa...ions/deadlines

Deadlines

You can usually pay voluntary contributions for the past 6 years. The deadline is 5 April each year.

You can sometimes pay for gaps from more than 6 years ago, depending on your age.
HM Revenue & Customs (HMRC) has made changes to extend the time limits for paying voluntary NICs for the 2006-07 to 2015-16 tax years inclusive, to ensure contributors who reach State Pension age under the new State Pension system are not disadvantaged. Those affected will have more time to pay voluntary class 2 or class 3 contributions for the years from 2006-07 to 2015-16. The extended time limits apply if:

person reaches State Pension age on or after 6 April 2016; and
person makes payment by 5 April 2023.
The amount to be paid is as follows:

if paid by 5 April 2019, the amount payable is the rate that applied in the 2012-13 tax year for the tax years 2006-07 to 2009 - 10 for Class 3 and 2006-07 to 2010-11 for Class 2.
for the remaining years, up to and including 2015-16, higher rate provisions will not apply until 6 April 2019.
if payment is made after 5 April 2019, the rates may have increased.

Voluntary NI contributions | The Pensions Advisory Service
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Old Jul 15th 2016, 7:57 pm
  #43  
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Default Re: Voluntary National Insurance contributions

Anyone follow up on this new 10 year back contributions yet? I am getting ready to call to find out if I can pay the additional 4 years (since I have already paid the 6) but cannot find in the pension links provided anywhere that spells out in detail that I have the right to pay for those extra years.

By the way, whoever writes those pension statements and "information" websites need to be severely rapped over the head
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Old Jul 15th 2016, 8:04 pm
  #44  
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Default Re: Voluntary National Insurance contributions

Perth @ post # 43, does the following help any

State pension top-ups overhaul: you risk paying more for nothing - Telegraph

How can I fill the gap?
"You can normally only fill gaps in your record for the past six years. However, those retiring before next April are being offered the opportunity to plug a further six years within six years of retirement. Buying back each year will cost £14.10 per week or £733.20, which will buy you an extra £200 annual pension under the current regime."
If you survive for four years, then your investment is made good
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Old Jul 15th 2016, 8:19 pm
  #45  
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Default Re: Voluntary National Insurance contributions

Originally Posted by not2old
Perth @ post # 43, does the following help any

State pension top-ups overhaul: you risk paying more for nothing - Telegraph

How can I fill the gap?
"You can normally only fill gaps in your record for the past six years. However, those retiring before next April are being offered the opportunity to plug a further six years within six years of retirement. Buying back each year will cost £14.10 per week or £733.20, which will buy you an extra £200 annual pension under the current regime."
If you survive for four years, then your investment is made good
Thanks, but I am not within six years of retirement due to the increase in retirement age. I am 58. I did read the entire article and it did not appear to apply to me. The whole thing is so confusing
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