Should I make voluntary contributions to national insurance?
#1
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Thread Starter
Joined: Oct 2013
Posts: 72
Should I make voluntary contributions to national insurance?
I've lived and worked in the UK from birth and moved to Canada in 2013. I have 16 years of contributions and have been told I can make voluntary payments for 3 years where I am missing payments, I was told these would be about 800 quid for each year, I believe this is a class 3 payment, how do I go about making these payments?
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
#2
Re: Should I make voluntary contributions to national insurance?
I've lived and worked in the UK from birth and moved to Canada in 2013. I have 16 years of contributions and have been told I can make voluntary payments for 3 years where I am missing payments, I was told these would be about 800 quid for each year, I believe this is a class 3 payment, how do I go about making these payments?
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
#3
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Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Re: Should I make voluntary contributions to national insurance?
I've lived and worked in the UK from birth and moved to Canada in 2013. I have 16 years of contributions and have been told I can make voluntary payments for 3 years where I am missing payments, I was told these would be about 800 quid for each year, I believe this is a class 3 payment, how do I go about making these payments?
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
And get access to the Government Gateway site so you can check your contributions.
#4
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Joined: Jan 2011
Location: Orton, Ontario
Posts: 2,031
Re: Should I make voluntary contributions to national insurance?
You may be eligible for Class 2 payments which are much cheaper - only about £185 pa. There’s a form you have to complete and submit to check you qualify. HMRC have been surprisingly helpful when we contacted them. At that cost, it’s a no brainer.
And get access to the Government Gateway site so you can check your contributions.
And get access to the Government Gateway site so you can check your contributions.
#5
Re: Should I make voluntary contributions to national insurance?
You may be eligible for Class 2 payments which are much cheaper - only about £185 pa. There’s a form you have to complete and submit to check you qualify. HMRC have been surprisingly helpful when we contacted them. At that cost, it’s a no brainer.
And get access to the Government Gateway site so you can check your contributions.
And get access to the Government Gateway site so you can check your contributions.
I read the stuff on line several times and concluded I didn't qualify for the lower rate.
But I applied and they said I did qualify.
#6
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Re: Should I make voluntary contributions to national insurance?
#7
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Joined: Dec 2016
Location: St Catharines, Ontario From Bournemouth UK
Posts: 417
Re: Should I make voluntary contributions to national insurance?
No brainer, pay missing years. It will be paid back within 3 years. I.e assuming you get your statepension at 67, you wil be quids in from 70. Each year is worth 5 pounds a week extra pension. Live 20 years in retirement pays 5200 pounds for each contributing year
#8
Re: Should I make voluntary contributions to national insurance?
I've lived and worked in the UK from birth and moved to Canada in 2013. I have 16 years of contributions and have been told I can make voluntary payments for 3 years where I am missing payments, I was told these would be about 800 quid for each year, I believe this is a class 3 payment, how do I go about making these payments?
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
Going forwards, I'm wondering if I should continue with voluntary payments and how do I arrange this? Do I get issued a yearly bill or do I just make the payments myself? I understand I would need to get an 18 digit reference of some sort to make the payments into?
Any guidance would be appreciated.
#9
Re: Should I make voluntary contributions to national insurance?
We are in the process of updating ours. Our Financial Advisor said absolutely do it.
#10
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Thread Starter
Joined: Oct 2013
Posts: 72
Re: Should I make voluntary contributions to national insurance?
I am currently working for a Canadian employer, will I still qualify for class 2? I already have a login for the site to check my years of contribution and it said I can pay ~£800 for each year where I have gaps in the last 6 years.
Which form do I fill out to check if I can qualify for class 2, does anyone have the link?
Which form do I fill out to check if I can qualify for class 2, does anyone have the link?
Last edited by dj322; Oct 24th 2022 at 5:51 am.
#11
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Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Re: Should I make voluntary contributions to national insurance?
I am currently working for a Canadian employer, will I still qualify for class 2? I already have a login for the site to check my years of contribution and it said I can pay ~£800 for each year where I have gaps in the last 6 years.
Which form do I fill out to check if I can qualify for class 2, does anyone have the link?
Which form do I fill out to check if I can qualify for class 2, does anyone have the link?
The important info is highlighted in purple.
The form is CF83 - that will check your eligibility. I think it took a couple of months when I did it. You’ve got nothing to lose by applying.
#12
Re: Should I make voluntary contributions to national insurance?
I applied myself with a CF83 form and had a reply in the mail a few months later that I was approved to buy back 15 years -- 13 years at Class Two plus 2 years at Class Three (for me, the Class Three years were when I worked part time).
I then phoned and was told that I didn't have to buy back all of the 15 years at once but I could only buy back full years at one time (no partial years) and any buy back must be completed before April 2023.
I have also set up a pre approved payment to pay for upcoming years, I was told those payments will be called for in April each year at Class Two rates.
It sounds complicated but it was really straight forward and the Call Centre agents were super helpful.
I then phoned and was told that I didn't have to buy back all of the 15 years at once but I could only buy back full years at one time (no partial years) and any buy back must be completed before April 2023.
I have also set up a pre approved payment to pay for upcoming years, I was told those payments will be called for in April each year at Class Two rates.
It sounds complicated but it was really straight forward and the Call Centre agents were super helpful.
#13
Re: Should I make voluntary contributions to national insurance?
And to Dbd33's point, you only need to draw your pension for about 7½ months to make it worth paying for an extra year at Class 2 rates.
#14
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Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Re: Should I make voluntary contributions to national insurance?
My typo - I should have said £158.