UK State Pension newbie

[Gareth]

got a reply from a complaints manager at HMRC that I would also describe as a legend.

Tracy W (won't include her full surname name unless she gives permission) by any chance?

Mine was Steve C. There are two legends at HMRC!

[Gareth]

I assume the reason you have finally correctly ended up on Class 2 is because you had made 3 years of paid NI contributions prior to moving abroad (not including the 3 collage 'credit' years I think you get for staying on at school past 16)? I moved abroad straight after university which I think makes me ineligible for Class 2 (although that would be the dream!)

I didn’t have these years of contributions and didn’t even know about this when I initially applied. This was the reason I was eventually given after several “computer says no” letters. But a friend here was accepted straight away and he didn’t have these years either. That made me complain about not being accepted. So it is still possible to be accepted without these years of payment. It’s a pain in the proverbials to sort it out but once I had it done, it was a massive relief. Good luck!

[Spa06Jc]

I didn’t have these years of contributions and didn’t even know about this when I initially applied. This was the reason I was eventually given after several “computer says no” letters. But a friend here was accepted straight away and he didn’t have these years either. That made me complain about not being accepted. So it is still possible to be accepted without these years of payment. It’s a pain in the proverbials to sort it out but once I had it done, it was a massive relief. Good luck!

Oh wow - good to know. So you were initially accepted onto class 3 and then complained and were moved on to class 2? What did you say when you complained?

Just rang them today and spoke to a lady called Helen. She said they currently have an 8 week turnaround, so my form should be processed in the next few days, but she added a note to my account saying I was anxious to get it sorted. I also asked about issues that occur when you try to back-pay contributions. She mentioned that if they don't log the back-pay amount in time, the system thinks it's your regular payment so defers to that instead of the direct debit. Her advice was to ring them once you make a back-payment so they can pro-actively log it

(Also, I checked back the initial correspondence I have received, and I seem to have received a letter from a Tracy W back in June. Unfortunately, all she was asking was for my addresses, work history and time in and out of the UK - all of which came to nothing after I submitted it :'()

[Gareth]

Oh wow - good to know. So you were initially accepted onto class 3 and then complained and were moved on to class 2? What did you say when you complained?

Not quite. I was rejected from both class 2 and class 3. I couldn't pay anything at all.

I emailed the MP in charge for HMRC, who at the time was Jesse Norman. I scanned all of the letters and forms I had sent and the correspondence I had received from HMRC into one PDF document and attached it. I just simply explained I had been rejected by HMRC from paying NICs and could he please reverse the decision.

[Chris]

Oh, that sounds like a fairy-tale ending! If you are able to pass on details/connect me to an actual person who works there it would be a massive help.

I am really sorry I only just saw this message.

Let me E-mail her now (my HMRC contact) to ask for permission to give you her E-mail address. Assuming she grants permission I will PM it over to you. Give me a few days (because if I recall correctly she only works Tuesday and Thursdays).

[bryanc]

can you pay this from a uk bank acct?(sorry if this is a silly question)

[RetireJapan]

can you pay this from a uk bank acct?(sorry if this is a silly question)

I pay my monthly payments by Direct Debit from my UK account. I send some money over by Transferwise two or three times a year.

[Spa06Jc]

Very happy to update that I received a letter last week informing me that a direct debit had been set up for Class 3 contributions, and they had collected a first payment of £657.90 for the period 12/04/2020 to 06/02/2021.

Checked my UK bank and confirmed that the direct debit had gone through - so it looks like I am now set! Thanks to everyone in thsi thread for the support and encouragement, and thanks to Ben and the site for inspiring me to keep at it!

I also received a separate letter informing me I have the option to make voluntary NICs shortfall payments. It turns out I currently have 3 qualifying years from when I was in sixth form. In total I seem to be able to back-pay 14 years' worth of contributions (I'm turning 34 this year). I'd be interested to know what others in this situation have done - how many years have you paid back?

My understanding is that to receive the full state pension you are required to have paid 35 qualifying years. My state pension age according to the calculator on gov.uk is 68 years old, and I would reach that in 2055. If I simply continue paying now, I would reach the full 35 years in 2052 (as I already have 3 qualifying years). While living abroad, I understand I can choose to stop paying contributions whenever I like, but if I move back the UK I assume I have to pay NICs no matter what. Therefore, so long as I continue to make contributions from now on, and if I plan to move back in a few years time, is there any reason for me to back pay any of my missing 14 years, beyond a change in the law/system?

[adamu]

My understanding is that to receive the full state pension you are required to have paid 35 qualifying years. My state pension age according to the calculator on gov.uk is 68 years old, and I would reach that in 2055. If I simply continue paying now, I would reach the full 35 years in 2052 (as I already have 3 qualifying years). While living abroad, I understand I can choose to stop paying contributions whenever I like, but if I move back the UK I assume I have to pay NICs no matter what. Therefore, so long as I continue to make contributions from now on, and if I plan to move back in a few years time, is there any reason for me to back pay any of my missing 14 years, beyond a change in the law/system?

I think your reasoning is perfect. Paying class 1 NICs if you go back to the UK is going to feel very expensive especially when you're already covered via voluntary contributions. However, who knows how the rules will change. They could make voluntary payments more expensive, stop them being possible, extend the number of years required, etc. So it's a personal call, but might be worth doing for insurance purposes, depending how much you can stomach. If going that route, it might be worth fighting for class 2 contributions - then it makes the decision a no-brainer.

[Beaglehound]

Even with all the variables, if you’re planning to move back, I would probably not choose to make back payments at class 3 rates.