New State Pension Change

[Johnniey]

There has been a great change in the state pension!

 

I got good news today from HM Revenue and Customs.

 

I made an inquiry 6 years ago and was told I could pay back 6 years at about  GBP 700 a year. I chose not to.

 

I made more inquiries recently and they sent me a letter saying I qualify for voluntary Class 2 contributions. Also I can pay back 10 years at about GBP 140 a year! great news. Then I can pay for the next 10 years to get the full pension for paying 30 years.

 

One thing they didn't tell me was where to send it to and how. Does anyone know?

 

Anyway, 1500 quid for 10 years is a lot better than 7000, so I chuffed today!

[evadgib]

That's interesting, as they expect me to fork out £14.10 pw  @ vol rate as I no longer qualfy for class 2. I appealed several weeks ago but as yet no reply. I'm currently 5 years short after the goalposts were moved in Apr.

[Gringogazzer]

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414910/NI38_CF83.pdf
I don't know your circumstances but imagine you'll pay class 3. Fill & send back to HMRC.
Read the original link to see what's applicable to you.
I'm not an accountant, but think that's right. Check.

https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

[Gringogazzer]

I thought they can only go back 6 years. But again...check

[Johnniey]

My letter today says "We've accepted your application to pay voluntary class 2 NI contributions.

 

I've found the website payment page but the ask for an 18 digit  reference number shown on your HMRC payment request .

 

There is no such number but the amounts for the last 10 years, from 2.65 pounds a week in 2006-7 to 2.80 a week last year.

[Johnniey]

Even better, the pound is only worth 43 baht so exchanging into pounds will save me a fortune.

[Johnniey]

19 hours ago, Gringogazzer said:

I thought they can only go back 6 years. But again...check

So did I until I phoned them a few months ago

[Gringogazzer]

So did I until I phoned them a few months ago

Yer, read the link I supplied & says sometimes can go back longer than 6 years depending on age.
Not something I've come across before.

[bark]

Why even bother to apply. The pound is almost worthless now. They say that by the year 2020, it will

be on par with the Thai baht.

[nongsangcity]

12 minutes ago, bark said:

Why even bother to apply. The pound is almost worthless now. They say that by the year 2020, it will

be on par with the Thai baht.

Worthless ?...wow i wish i had a sack full of crisp new English 50 pound notes..

[Jonmarleesco]

I'd recheck your figures. I know HMG's maths is dubious, but ₤140 a year for 10 years, plus another 10 years, for a pension at today's rates of around ₤116 a week?

 

Whatever the outcome, you'd need to arrange payment to the DWP, not to HMRC.

 

And it's no longer 30 years for maximum pension; 35 years, now.

[Jonmarleesco]

1 hour ago, bark said:

Why even bother to apply. The pound is almost worthless now. They say that by the year 2020, it will

be on par with the Thai baht.

If you believe the pound would ever hit par with the baht, you're seriously delusional.

[applepie16]

Sound too good to be true to me - I paid off the few remaining years that I owed when I turned sixty-five, to bring my state pension up to the full thirty years (it's now thirty-five as someone states above). I elected to pay four or five of the cheapest years I owed (they had previously sent me a letter listing which years were unpaid and how much was owed), and did so at the rate of approximately £700 for each year, as you state.

So sorry to say but I think your understanding of the correspondence is faulty - but if it is not, then good luck!

[nontabury]

27 minutes ago, Jonmarleesco said:

If you believe the pound would ever hit par with the baht, you're seriously delusional.

 

Not if you believe project fear.

 

[sometimewoodworker]

1 hour ago, Jonmarleesco said:

I'd recheck your figures. I know HMG's maths is dubious, but ₤140 a year for 10 years, plus another 10 years, for a pension at today's rates of around ₤116 a week?

 

Whatever the outcome, you'd need to arrange payment to the DWP, not to HMRC.

 

And it's no longer 30 years for maximum pension; 35 years, now.

 

The payments do go to HMRC (certainly that is on the cheques I write) not to the DWP, I'm paying mine. Also the pension contributions are one of the very few things that are a no brainier. 

 

Even at at the class 3 rates you get all the money you need to pay back in less than 4 years.

 

if you qualify for class 2 it's very much faster.

 

and very few people who are making up years will get £116 they will almost all get £155.

Edited October 17, 2016 by sometimewoodworker

[topt]

21 minutes ago, sometimewoodworker said:

 

The payments do go to HMRC (certainly that is on the cheques I write) not to the DWP, I'm paying mine. Also the pension contributions are one of the very few things that are a no brainier. 

 

Even at at the class 3 rates you get all the money you need to pay back in less than 4 years.

 

if you qualify for class 2 it's very much faster.

 

and very few people who are making up years will get £116 they will almost all get £155.

Unless you were contracted out for part of it in which case potentially substantially less

[George FmplesdaCosteedback]

4 hours ago, bark said:

Why even bother to apply. The pound is almost worthless now. They say that by the year 2020, it will

be on par with the Thai baht.

Who are "they", the remoaners?

[George FmplesdaCosteedback]

Unless something has changed since last year, you don't need to pay until you are 66-67, you need to have (check) 25 years worth of contributions to qualify for a full pension. If you pay in more you only get back what you put in on top of the standard pension.

[RichardColeman]

As a Brit here in Pattaya, the exchange rate is killing me - but not as much as some of my friends living here on basic UK pension. But I feel in the next few years Europe will disintergrate and the UK will be in a good position, having already left and sorted out its new future, whereas all these new leavers will still have it all to do, with Germany trying to screw them over leaving too. Europe has too much debt, too many failed financial states, and too many new mouths to feed. The European banks can only support this for so long.

 

The UK is not affraid to take a step in a hard direction. It has shown that over centuries.  I'd ask anyone here to think about what their own country should do (if not European) if they were told by other countries what they had to do, who could live in their country unchecked and who imposed huge expensive centralized governments. can you see USA allowing Mexico let anyone come across the border and live in the USA ? 

 

I'll take the pain - for now. Either that or make the lodgers in my house in the UK start paying me a set monthly Baht amount !

 

 

 

[nongsangcity]

3 hours ago, Jonmarleesco said:

I'd recheck your figures. I know HMG's maths is dubious, but ₤140 a year for 10 years, plus another 10 years, for a pension at today's rates of around ₤116 a week?

 

Whatever the outcome, you'd need to arrange payment to the DWP, not to HMRC.

 

And it's no longer 30 years for maximum pension; 35 years, now.

its paid to the HMRC...my wife pays them by direct debit every year at 14 pounds a month....class 2...

[ableguy]

4 hours ago, Jonmarleesco said:

If you believe the pound would ever hit par with the baht, you're seriously delusional.

Like many posters on this thread.

[George FmplesdaCosteedback]

6 hours ago, Jonmarleesco said:

I'd recheck your figures. I know HMG's maths is dubious, but ₤140 a year for 10 years, plus another 10 years, for a pension at today's rates of around ₤116 a week?

 

Whatever the outcome, you'd need to arrange payment to the DWP, not to HMRC.

 

And it's no longer 30 years for maximum pension; 35 years, now.

I got a letter from them in 2014 saying I now had enough contributions for a full  pension. Have they moved goalposts again?

 

[Gringogazzer]

Why even bother to apply. The pound is almost worthless now. They say that by the year 2020, it will
be on par with the Thai baht.

The release of tier 1 data this week should stabilise the pound & when the politicians pull their fingers out, can get moving again.

[Dene16]

I am 53 years of age (not worked after 51) and i will get the full pension minus my contracted out part of the state pension. As i do not wish/need to work any more. and will receive my company pension at 55.  I had 32 years service at age 50 i think and it is worth £129

I only need thirty years service but as they have changed the rules for others ( i.e 35 years) i can now continue to contribute further, to raise it to £155 pounds per week, counteracting the contracted out part. They stated that it would take another 6 years of contributions

It was all dependant on your age when they brought in the new rules 

It stated  on the HMRC web site  my entitlement, what i would receive and any missed years ( there is no longer any earnings related addition to the state pension as it was removed)

For many people in my age bracket and contracted out, this will come as a bonus

i had previously checked with HMRC but all of this information is now available online you just need to register a gateway account with HMRC

[Dene16]

5 hours ago, George FmplesdaCosteedback said:

I got a letter from them in 2014 saying I now had enough contributions for a full  pension. Have they moved goalposts again?

 

 

I am 53 years of age (not worked after 51) and i will get the full pension minus my contracted out part of the state pension. As i do not wish/need to work any more. and will receive my company pension at 55.  I had 32 years service at age 50 i think and it is worth £129

I only need thirty years service but as they have changed the rules for others ( i.e 35 years) i can now continue to contribute further, to raise it to £155 pounds per week, counteracting the contracted out part. They stated that it would take another 6 years of contributions

It was all dependant on your age when they brought in the new rules 

It stated  on the HMRC web site  my entitlement, what i would receive and any missed years ( there is no longer any earnings related addition to the state pension as it was removed)

For many people in my age bracket and contracted out, this will come as a bonus

i had previously checked with HMRC but all of this information is now available online you just need to register a gateway account with HMRC

[sometimewoodworker]

15 hours ago, topt said:

Unless you were contracted out for part of it in which case potentially substantially less

 

However if you were contracted out you then have another pension that you were paying into which makes your total equal to, or more probably significantly greater than, £155.

 

cake and eat it springs to mind.

Edited October 18, 2016 by sometimewoodworker

[sometimewoodworker]

10 hours ago, George FmplesdaCosteedback said:

I got a letter from them in 2014 saying I now had enough contributions for a full  pension. Have they moved goalposts again?

 

No

 

if you need 30 or 35 years depends on your retirement date

[topt]

7 hours ago, sometimewoodworker said:

 

However if you were contracted out you then have another pension that you were paying into which makes your total equal to, or more probably significantly greater than, £155.

 

cake and eat it springs to mind.

The OP and my reply to your comments was purely about the state pension - nothing to do with any other potential payments..........

 

Trap and shut spring to my mind

[George FmplesdaCosteedback]

14 hours ago, Dene16 said:

 

I am 53 years of age (not worked after 51) and i will get the full pension minus my contracted out part of the state pension. As i do not wish/need to work any more. and will receive my company pension at 55.  I had 32 years service at age 50 i think and it is worth £129

I only need thirty years service but as they have changed the rules for others ( i.e 35 years) i can now continue to contribute further, to raise it to £155 pounds per week, counteracting the contracted out part. They stated that it would take another 6 years of contributions

It was all dependant on your age when they brought in the new rules 

It stated  on the HMRC web site  my entitlement, what i would receive and any missed years ( there is no longer any earnings related addition to the state pension as it was removed)

For many people in my age bracket and contracted out, this will come as a bonus

i had previously checked with HMRC but all of this information is now available online you just need to register a gateway account with HMRC

I have a gateway account, I will check. I am 61+ so it might be different.

[sometimewoodworker]

2 hours ago, topt said:

The OP and my reply to your comments was purely about the state pension - nothing to do with any other potential payments..........

 

Trap and shut spring to my mind

Totally disingenuous to effectively complain about getting less state pension when the reason you (you meaning anyone who contracted out [I have no idea if you personally did or not, nor do I wish to know]) are getting less is because you have been paying into a different pension, and so will be getting more than if you had not decided to pay a reduced amount into the state one.

 

The other pension is not a potential one. It is actual.

if it did not exist you would not have been able to contract out.

 

When you decided to contract out you were told that your state pension would be lower. You made the choice (whether it was a good choice or not it was an informed one)