Have you topped up a UK pension to cover gaps?

[Per_Travels]

If you have been approved to pay NI contributions at the Class 2 rate you will receive a letter each UK tax year detailing the amount owing for that year. As mentioned by @SydneySwan you have the option to set up a direct debit for these ongoing payments.

How long did it take for your contributions to be reflected in your account?

I paid on the 17th Oct last year. Nothing appeared on my account and I called them last week to check they'd actually received the money. Person I spoke to said they could see it in my account and then offered to do the allocation straight away. This was then reflected in my account (and updated pension summary) a couple of days later.

 

[Rebus]

I paid on the 17th Oct last year. Nothing appeared on my account and I called them last week to check they'd actually received the money. Person I spoke to said they could see it in my account and then offered to do the allocation straight away. This was then reflected in my account (and updated pension summary) a couple of days later.

That's brilliant. What number did you call, and how long were you on hold?!

 

[QF029]

I called up last night because the online form to qualify for Class 2 seems onerous. They want you to list every job (and employment gap) since you left the UK which can be a lot.

The helpful lady confirmed that it was all required, they're taking about 5 weeks to process and as long as the form is submitted before April 5 then you would have extra time to back pay the eligible years once approved.

 

[SydneySwan]

I called up last night because the online form to qualify for Class 2 seems onerous. They want you to list every job (and employment gap) since you left the UK which can be a lot.

The reason this is required is because they will allow class 2 for the periods that you are employed and class 3 for the periods that you are not employed.

 

[QF029]

The reason this is required is because they will allow class 2 for the periods that you are employed and class 3 for the periods that you are not employed.

Do you know how it works with part employment years? For example of you work more than half the UK tax year it's counted or is the threshold higher?

 

[SydneySwan]

Do you know how it works with part employment years? For example of you work more than half the UK tax year it's counted or is the threshold higher?

I am unaware if there is a threshold. From my own experience I had to pay class 3 for short periods of unemployment. I have worked a minimum of 7 months of every UK tax year since moving to Australia.

 

[FlyingFiona]

Do you know how it works with part employment years? For example of you work more than half the UK tax year it's counted or is the threshold higher?

It's calculated by weeks, so the weeks you work you pay Class 2 and the weeks you don't you pay Class 3.

My employment history as a contractor was LONG and this process was very painful to put together with a lot of guestimation re dates over the 20 years I had to fill in. (I had a rough idea of months but had I realised about the weeks element I'd have guestimated differently.)

 

[QF029]

It's calculated by weeks, so the weeks you work you pay Class 2 and the weeks you don't you pay Class 3.

Useful info. I gather in this case you can elect to pay Class 2 and not pay any Class 3?

 

[SydneySwan]

Useful info. I gather in this case you can elect to pay Class 2 and not pay any Class 3?

I believe you need a complete year's record for that year to count towards the pension. If DWP offer you 15 weeks of class 3 and 37 weeks of class 2 for a year and you only pay the 37 weeks of class 2 then AFAIK that year will not be counted to your pension.

DWP only worries about whole years when it comes to pension entitlement. You cannot be entitled to 37/52 of a year's pension.

You need to seek your own advice on this.

 

[QF029]

I believe you need a complete year's record for that year to count towards the pension. If DWP offer you 15 weeks of class 3 and 37 weeks of class 2 for a year and you only pay the 37 weeks of class 2 then AFAIK that year will not be counted to your pension.

DWP only worries about whole years when it comes to pension entitlement. You cannot be entitled to 37/52 of a year's pension.

You need to seek your own advice on this.

I appreciate the feedback. I don't need to seek my own advice as they will accept what they accept but I will have enough years that it should still be worthwhile. I can make that decision once my status is updated in the portal and I can see what I'm eligible for.

 

[Per_Travels]

I believe you need a complete year's record for that year to count towards the pension. If DWP offer you 15 weeks of class 3 and 37 weeks of class 2 for a year and you only pay the 37 weeks of class 2 then AFAIK that year will not be counted to your pension.

DWP only worries about whole years when it comes to pension entitlement. You cannot be entitled to 37/52 of a year's pension.

You need to seek your own advice on this.

This is my understanding as well based on the discussion I had when I called them - they count complete years only

 

[Per_Travels]

That's brilliant. What number did you call, and how long were you on hold?!

I called 0300 200 3500 (I was in the UK at the time - not sure if that makes any difference). I was on hold for about 20 min.

 

[Rebus]

Data point: One of my friends made their backdated Class 2 payments in early January and today their NI record has been updated to reflect this. I made mine at the same time but nothing is showing as yet. If that doesn't change I plan to call in a few weeks and hope that they can do a manual allocation as was the case for @Per_Travels

 

[andye]

I have only just discovered the HMRC app. The 3 extra years I recently paid for have credited in the most advantageous way (oldest first). I paid from a UK account, one year at a time

In two minds as to whether to get it over and done with or pay the remainder year by year

 

[aplmac]

I'm thinking I'll stop voluntary contributions now as I've made up all the gaps I can, have more than the required qualifying years, and my pension forecast if I stop voluntarily contributing now is only a few £ less/week than my forecast possible maximum if I were to continue paying Class 3 £££ until I reach UK pension age.

 

[Rebus]

I have only just discovered the HMRC app. The 3 extra years I recently paid for have credited in the most advantageous way (oldest first). I paid from a UK account, one year at a time

In two minds as to whether to get it over and done with or pay the remainder year by year

How long was it between making the payments and them being credited to your NI account?

 

[andye]

How long was it between making the payments and them being credited to your NI account?

It was 3 months ago I paid

 

[aplmac]

Data point: One of my friends made their backdated Class 2 payments in early January and today their NI record has been updated to reflect this. I made mine at the same time but nothing is showing as yet. If that doesn't change I plan to call in a few weeks and hope that they can do a manual allocation as was the case for @Per_Travels

My experience has been it can take 6 months or more for payments made directly from a UK bank account to show up on the website. When I've called, I'm told yes the payment has been received, but it is then MANUALLY allocated to your NI account in the appropriate year, which is where the delay occurs.

 

[MEL_Traveller]

Just spoke to HRMC to chase up eligible years and what I might need to pay.

The agent said ‘we haven’t received your response from July 2024’.

Then said ‘oh, yes we have’ (too late, ambulance called )

Anyway… apparently the team is overwhelmed… their official line is that as long as you have *applied* by April you’ll be eligible, it doesn’t have to be finalised by then. They said they just can’t process everyone by the deadline.

Haven’t got that in writing, but they’re usually pretty fair on those sorts of things.

 

[clifford]

Just spoke to HRMC to chase up eligible years and what I might need to pay.

The agent said ‘we haven’t received your response from July 2024’.

Then said ‘oh, yes we have’ (too late, ambulance called )

Anyway… apparently the team is overwhelmed… their official line is that as long as you have *applied* by April you’ll be eligible, it doesn’t have to be finalised by then. They said they just can’t process everyone by the deadline.

Haven’t got that in writing, but they’re usually pretty fair on those sorts of things.

I do understand. I'm also a recipient of the British pension.

And, as a matter of interest, I worked at Longbenton in North Tyneside in 1968 as a computer programmer for the MPNI, and it really wasn't much better then.