Skip to main content

This is a new service – your feedback will help us to improve it.



Posted 4 months ago by Bracken Alder
I'm paying class 2 voluntary National Insurance from abroad and will reach age 66 before April 2025. My pension award letter quotes the same amount as my pension forecast, which was based on NI contributions to 5 April 2024. But I am still paying NI during 2024-2025 tax year. Will these 2024-2025 contributions count towards my State Pension entitlement, or do they not count because 2024-2025 isn't a complete tax year? In the latter case, can I continue paying class 2 voluntary contributions until 5 April 2025 to complete the year, to avoid my 2024-2025 contributions being lost? Also, do I need to cancel the direct debit to stop paying contributions after April 2025, or after my 66th birthday, or will they stop automatically?
Posted 3 months ago by HMRC Admin 18 Response
Hi,
This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances. 
You may wish to contact our National Insurance  team:
National Insurance: general enquiries
or consider seeking professional advice.
Thank you. 
Posted 3 months ago by Bracken Alder
My question is *not* about my specific circumstances, but about your rules. Information about my own case is included *only* as background, to make the reason for my question clearer, and is included because it may make it easier for you to answer. You can therefore ignore the first three sentences and you will see that my questions are general ones. I am asking three things: 1. In assessing State Pension entitlement, when a person paying voluntary Class 2 contributions from abroad retires during the tax year and thus their final contribution year is incomplete, are the final year's contributions disregarded, so that only complete years count towards pension entitlement? 2. If that is the case, is it possible to complete the final year's contributions, by continuing to pay Class 2 contributions after beginning to receive the State Pension? 3. When Class 2 contributions are being paid by direct debit, will they cease automatically when State Pension begins, or does the contributor need to actively cancel the direct debit? I have already clarified that my question is not specific to my own case, and you have declined that clarification, stating that you do not give advice specific to an individual case, nor clarification of information available on the gov.uk website. I would emphasise *again* that my questions are not specific to my individual case, but are about your rules. I would add that I have already sought the answers on your website and failed to find them; I would not be posting these questions here if I could find the answers on your website. I don't know what more I can do to make these points clear, and I hope that you will at least post my questions now, and ideally, answer them. Thank you for your attention.
Posted 3 months ago by HMRC Admin 25 Response
Hi Bracken Alder,
An individual paying voluntary Class 2 National Insurance contributions by direct debit should cancel their direct debit at the end of the tax year before the one in which they reach UK State Pension Age.
This is because the tax year in which they reach UK State Pension will not count for pension purposes and the direct debit will not stop running until the date they reach UK State Pension Age.
It is not possible to pay further for that tax year from State Pension Age.
Thank you.
 
Posted 17 days ago by Les Twigg
Continuing from the above, I now understand that voluntary class 2 in the final tax year is not payable as it's not a full year.
But does a voluntary contribution for the final full year count, as it may not be due until after a person reaches pension age (depending on birth month). Presumably, paying before pension age, even though it's not due until the final January, would not make a difference?
I also cannot find an answer to this on the website.
Thanks
Posted 16 days ago by HMRC Admin 13 Response
Hi Les Twigg
The forum cannot advise you in relation to the circumstances outlined.
Guidance is available at: 
•    The new State Pension: Eligibility and 
•    Check your State Pension forecast 
You can also use the options at:
•    Contact the Future Pension Centre to get the pension forecast sent out to you.
They will also be able to answer the questions you have.
You can also find out information about your State Pension and National Insurance at: 
• your personal tax account or
• the official HMRC app 
Thank you
 

You must be signed in to post in this forum.