Voluntary Class 2 NI annual rate calculation

[bjmarren]

Hi All,

An obvious question maybe, but I need to pay Voluntary Class 2 contribution for the 21/22 financial and was just wondering if I simply take the weekly amount, GBP 3.05 and multiply by 52 making GBP 158.60. Need to get this 100% correct as DWP (Depart of Works and Pensions) made a real mess of my original payment for that year and really need to make another payment immediately to make the year count towards my State pension amount which I'm due to start receiving end of March. Couldn't find anything on the GOV website regarding this!

Many thanks in advance,

Brendan

[chas49]

My Voluntary Class 2 NICS for 2021/22 calculated by the HMRC online self-assessment system (and paid and now counting towards my State Pension) was £158.60 so your figures are correct.

I paid mine in May/June but HMRC didn't update their records until late October so I had a payment of arrears of SP in December - so it may take a while to feed through. I suspect your initial SP award won't take account of the additional year, but you'll get it eventually (fingers crossed).

[chas49]

Moderator Message:
I'm moving this to Pensions - Practical for better visibility (chas49)

[mc2fool]

An obvious question maybe, but I need to pay Voluntary Class 2 contribution for the 21/22 financial and was just wondering if I simply take the weekly amount, GBP 3.05 and multiply by 52 making GBP 158.60. Need to get this 100% correct as DWP (Depart of Works and Pensions) made a real mess of my original payment for that year and really need to make another payment immediately to make the year count towards my State pension amount which I'm due to start receiving end of March. Couldn't find anything on the GOV website regarding this!

The figure is correct but what do you mean by made a real mess of my original payment? Do they already have your money or did they lose the cheque or ... ? Just wondering why you need to send the dosh again rather than getting the real mess sorted out.

BTW, it's HMRC that takes your NI contributions and maintains your NI record, not DWP. They just deal with the actual pensions.

[bjmarren]

Cheers chas49,

It was what I had thought but wanted to be 100% sure. I actually paid for the 21/22 year back in Oct 21 to be sure that it would recorded well in time but up until yesterday the system showed "year is not full". After countless telephone calls it transpires that the GBP 158.60 that I originally sent, was input as GBP 15.60! Someone missed out the all important digit8! They then took GBP 5.10 of the 15.60 and credited it to the 20/21 year and left 10.50 in the 21/22 year, without informing me. If I hadn't phoned up (from Bulgaria) and tried to find out what the situation was with 21/22, my NI record would be a year less that I was expecting. Luckily I and they still have time to rectify the situation! Thanks once again for the prompt reply.

Brendan

[bjmarren]

Hi mc2fool,

I was hoping you would come along when I posted on the above.

Although I have a copy of the online Barclays payment that confirms that GBP 158.60 was sent, only GBP 15.60 was actually credited to my NI account for 21/22. The people who I spoke to could only confirm what amount had been assigned to that particular year. It would appear, to me at least, that an input error occurred somewhere along the line, whereby the digit "8" of the 158.60 was left out by mistake, thus resulting in a credit of just 15.60. In addition, GBP GBP 5.10 of this GBP 15.60 was credited to the 20/21 year, even though I have a copy of the Barclays online payment that confirms that GBP 156.80 was sent for the 20/21 year. No one could tell me why this happened.

I'm due to start receiving my state pension on the 28th March this year, and I had already sent a letter to HMRC in early December asking for this to be clarified, but as yet nothing has done regarding my letter, which was posted in London in early November as I happened to be there for a few days. I actually spoke to them in late November and tried to sort this out but I was advised to send a letter which is what I did, but without the additional details that I subsequently learnt yesterday. I was told that they would put a priority on my letter which was only received on the 11th December although I sent it on the 4th December from central London. They also said they could request an investigation into why there was a difference between the amount sent and subsequently credited but it would take time. Given the time, hassle and not insignificant telephone costs (120 minutes in November alone, although only 20 minutes actually speaking to someone), I decided to send the balance (GBP 148.10) to ensure the 21/22 year would count towards my final pension figure, and start the process of claiming my pension. They said the funds would be credited within 6 weeks, i.e. before the end of the financial year. They also said I could anyway request that an investigation is started to sort out the difference, and any money that is subsequently owed to me would be refunded.

As regards who should deal with what, I was dealing with the Centre for non-residents, the DWP and the International Pensions centre, none of whom could give me a complete picture of what happened and why. I guess all the above are part of the same HMRC. I was assured that the phone number I used was correct, as I took it off one of the letters I received from HMRC, but there seems to be different parts of HMRC that deal with different aspects of NI contributions and pensions.

It has been extremely frustrating and stressful, but hopefully there is light at the end of the tunnel!

Any thoughts or advice?

Brendan

[mc2fool]

Any thoughts or advice?

Seems there's a number of cockups! Do you understand why £5.10 was credited to 20/21? Was that not a full year already?

I'm not sure I'd have sent the additional £148.10 -- it's just another amount they can cockup! -- I'd rather have just insisted they sort out the mess. Of course, if you're in need of the £5.82pw that represents (from April) sooner rather than later.....

It sounds like you've sent in two letters but it's not clear what or to whom. If you haven't received written acknowledgement from one or both of those that assures you that, at least, they've received your letter, understand the issue, and will get on the case, then I'd compile all your evidence (Barclays statement, etc) and, being explicit about what has happened and what you expect them to do, write to:

NIC and EO Complaints
HM Revenue and Customs
BX9 1AA
United Kingdom

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/complain-about-hmrc

[bjmarren]

Any thoughts or advice?

Seems there's a number of cockups! Do you understand why £5.10 was credited to 20/21? Was that not a full year already?

I'm not sure I'd have sent the additional £148.10 -- it's just another amount they can cockup! -- I'd rather have just insisted they sort out the mess. Of course, if you're in need of the £5.82pw that represents (from April) sooner rather than later.....

It sounds like you've sent in two letters but it's not clear what or to whom. If you haven't received written acknowledgement from one or both of those that assures you that, at least, they've received your letter, understand the issue, and will get on the case, then I'd compile all your evidence (Barclays statement, etc) and, being explicit about what has happened and what you expect them to do, write to:

NIC and EO Complaints
HM Revenue and Customs
BX9 1AA
United Kingdom

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/complain-about-hmrc

Yes, you're right, a number of cock ups. No, I don't know why £5.10 was credited to 20/21 as the guy I spoke to from the Centre for non-residents could only tell me what happened but not why, and yes the 20/21 year was a full year as I have a copy of the Barclays online payment confirming the amount (£156.80). Something else to get sorted out!

I have only sent 1 letter regarding this, and the DWP person I spoke to confirmed its receipt on 11th Dec, but said it appears no action had yet been taken on it, but will request a priority response. I will anyway send another one as I now have more information regarding the situation as a result of my phone calls last Thursday, and the first letter does not now tell the full story.

On reflection maybe I was a bit too hasty sending the balance of £148.10 to make the 21/22 year "Full", but I was feeling quiet stressed about the whole thing, as after paying in for nigh on 40 years they go and cock up the last year that I needed to pay, added to which Barclays decided to close my account last July as a result of Brexit, and I just wanted to get to the situation where my NI record was complete and I could request payment of my state pension, and I could then never have anything to do with any UK organisations again. I've even acquired an Irish passport due to my parents having being Irish and probably won't renew my British passport when the time comes.

Once again I'm indebted to you for the help you have given me on this and my pension calculation you kindly looked a while and thank you very much for your advice on how I should now proceed and the address and link and I will follow it to the letter.

Brendan

[mc2fool]

IIRC you have online access, what does it say regarding your NI record in regards to the detail of which years are full or not? Also, did you manage to get your birthday sorted out?

[bjmarren]

Post 2016 only 21/22 is not full. Prior to 2016, 2005/06 is not full as well as 2007/15, but as I already had 32 qualifying years, prior to the 2010 changes, I was advised that paying any further years would not necessarily improve my record, which is what you calculated was the situation. I re-started paying Class 2 post 2016 to increase my 32 years to 35 and because of being contracted out for a period.

Yes, the birthday issue was sorted out ok in the end.