ckusa

My wife and I called them the other day - I had a query about some years incorrectly showing as not counting (that was an error on their system), and my wife was querying a former query (totally wrong calculations of contributions). For the latter the agent said the response time was probably in excess of one year - but it was in the queue. Thankfully they have a few years to sort it out!

EdgeAA

Well it looks like they’re abolishing Class 2 NI again. Just read it on the BBC website.

tdrinker

"We are abolishing Class 2 National Insurance altogether ...," Hunt says.

Does this mean everyone paying voluntary Class 2 now has to pay the higher Class 3 from 2024/25? I think we need to wait until the detailed notes accompanying the Autumn Statement are released; hopefully this will happen soon.

Glasgow Girl

Depends upon whether they are abolishing Class 2 for the self employed as he stated, or if they are abolishing Class 2 altogether. Could be the same thing or not. Meaning that the self employed are no longer mandated to pay Class 2 but voluntary payments can still be made, or Class 2 no longer exists and therefore voluntary Class 2’s are gone as well. The latter did not go as planned when they tried this some years back and they had to back track, so you would hope it is better thought through this time. But it’s the government so probably not. Anyway, we will all have to wait and see. It is what it is. Class 3 is still a good deal but not the outstanding deal that Class 2 is. Even more important to back fill as many years as possible, I think the option to backfill 2006 to 2016 for those who qualify is now open until 2025, extended from the deadline in April of this year

On a positive note, the 8.5% pension increase is pretty nice on top of last years large increase of more than 10%.

WalesToUSA

The accompanying information to the Autumn Statement notes:

From 6 April 2024, self-employed people with profits above £12,570 will no longer be required to pay Class 2 NICs, but will continue to receive access to contributory benefits including the State Pension.

Those with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits including the State Pension, will continue to be able to do so. The weekly rate they pay will be frozen at £3.45 for 2024-25, rather than rising by CPI to £3.70.

stephend-

I was just wondering what that might mean for us - thanks for the post!

stephend-

I just received my letter from HMRC approving Class 2 NICs.

My application was received by HMRC on 10-May-23, and the approval letter was dated 09-Nov-23 so a quicker turnaround than I was expecting - almost 6 months to-the-day. Took nearly a month to work its way through the postal system though. As direct Debit mandates expire 6 months after you sign them they said for the most part they can't set them up even if you requested it as it is taking longer than 6 months to receive and process the forms. But you can pay online as detailed here: https://www.gov.uk/pay-class-2-national-insurance

Pulaski

Wow! A discount on those pricy Class 2 contributions!

00derek

Was your application on form CF83?
Website says my application was received 10 AUG 2023, and I can expect a reply by 13 JUNE 2024.
Feels like the process is getting quicker compared with the last 12-24 months....Will update if that changes.

LT1

Interesting update in the online HMRC NI portal:

You can soon check if you can make voluntary National Insurance contributions, and pay using the online service

You will soon be able to use your Personal Tax account to check if you can make voluntary National Insurance contributions. You will also be able to approve a payment through your online bank account using the online service.

morpeth

Interesting. for years I could check my NIC payments on line, and paid visa standing order or one time payment through my bank account.

Derrygal

I have a question regarding the UK state pension. I have lived in the US for well over half my life (I am 70 and claiming social security here). I didn't work in the UK for very long at all. I worked for 5 years full time until I had my children - then I was a stay at home mum for many years. When my children were older I worked part time for a few years. Then I moved to the US. I didn't bother contributing to my UK state pension all the time I lived here (I guess I should have). My husband (we have since divorced) contributed to his UK pension and apparently now collects it. I don't believe that I am entitled to anything from the UK and don't expect anything. However I was talking to my sister on the phone yesterday and she said that although you need 10 years work to get "a small pension" (not sure what she means by that) the government has a thing called Home Responsibilites Protection - she said all the years I was living in England and taking care of my children is taken into account. Has anyone ever heard of such a thing??????????????? My sister said I should apply, but to be honest, I don't feel comfortable doing that. I don't think I am entitled to anything and shouldn't get anything. As I said - most of my working life was here in the US. Thoughts anyone?

mrken30

This link might help you decide
https://www.moneysavingexpert.com/re...pension-boost/

Derrygal

Thank you!

tdrinker

It means you get a pro-rated pension, so if you have 10 years' contributions out of the 35 required for a full new state pension, you get 10/35ths of the full pension amount.

You might have 2 credited years if you were at school for 6th form. The part-time working years may also count, and you may be due some credits for your child care years. The best option is to make a note of the dates you were at school, worked, were a stay at home mum, etc., read the guidance in the MSE link mrken30 provided to work out what credits or anything else you might be entitled to, and contact the Pension Service. Patience will probably be required, as getting a response could be slow but it'll be worth it if you are due a pension.