Andrew from Vista Financial

Backdating NI contributions for UK State Pension

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    Hello.

     

    Just wanted to post this after a discussion at the weekend during the UK Pension Transfer Seminar regarding making up missed National Insurance contributions for receipt of the British State Pension whilst living in Oz.

     

    The general situation is that you can ordinarily backdate missed payments for up to 6 years with voluntary contributions.

     

    As below:

     

    If you have an incomplete National Insurance Contributions (NICs) record, this can reduce the amount of basic state pension (BSP) you receive at retirement. However, in some circumstances, you can make good any gaps by paying Voluntary NICs, thereby helping you qualify for, or improve, your entitlement.

     

    Voluntary NICs (known as Class 3 NICs) can be paid for any tax year in which you were over 16 and not liable to pay Class 1 and/or Class 2 NICs. In some circumstances, you can also pay voluntary NICs whilst living abroad.

     

    You cannot, however, pay voluntary NICs if you are a woman who has elected to pay the reduced rate NICs for the whole of a tax year.

     

     

     

    For the tax years 2002/03 onwards, the normal time limits for the payment of voluntary NICs apply. This means you must pay within six years of the end of the tax year in which voluntary NICs were due. The payment date for the:

    • 2002/03 tax year is 5 April 2009
    • 2003/04 tax year is 5 April 2010
    • 2004/05 tax year is 5 April 2011
    • 2005/06 tax year is 5 April 2012
    • 2006/07 tax year is 5 April 2013
    • 2007/08 tax year is 5 April 2014
    • 2008/09 tax year is 5 April 2015

    Additional rules in force from 6 April 2009

     

     

     

    From 6 April 2009, it will be possible to pay up to a further six years of voluntary NICs, over and above those detailed in the above section, to help boost the BSP entitlement. The criteria for paying these further contributions are:

    • Your State Pension Age (SPA) must be between 6 April 2008 and 5 April 2015;
    • You can only pay for missing years going back to 6 April 1975; and
    • You must already have at least 20 qualifying years (including Home Responsibilities Protection) on your NI record

    Read here for more info:

     

    http://www.pensionsadvisoryservice.org.uk/state-pensions/voluntary-nics

     

    Now that there are changes taking place where only 30 years NI contributions are required for full State Pension it may well be worth considering extra payments.

     

     

    Regards

     

     

    Andy

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    Quick question, how do you know how many qualifying years you have? Would the UK tax office tell you this?

     

    Hi, if you ring the inland revenue up they will send you out a statment of NI contributions saying how many years you have done and how many you still have to make. You can continue paying class 2 contributions from overseas monthly or yearly untill you get to the required amount of years which is 30 for us.

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    Hi All

    I have been here 3 years, can i pay for the 3 years i have missed and then continue to pay annualy can i pay it all in one go, or will i have to just start from now? Cheers

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    Hi All

    I have been here 3 years, can i pay for the 3 years i have missed and then continue to pay annualy can i pay it all in one go, or will i have to just start from now? Cheers

     

    Pretty sure you can back pay. It dosent start from scratch as it goes on your total contributions.

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    Hi All

    I have been here 3 years, can i pay for the 3 years i have missed and then continue to pay annualy can i pay it all in one go, or will i have to just start from now? Cheers

     

     

    Hi

     

    Yes, it is possible to backdate for up to 6 years and then pay annually going forward.

     

     

    Andy

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