Brits eager to boost their state pension by buying National Insurance (NI) contributions have been hit with a snag – they need a special reference number for the online process. One frustrated taxpayer reached out to HMRC after hitting a wall trying to top up their contributions.
To get the full new state pension, you typically need 35 years of NI contributions, while the full basic state pension usually requires 30 years' worth. The taxpayer queried: "If I wanted to buy back NI credits and can’t do it online, how would I go about it please? Tried calling the Future Pension Service but just get referred back to the website and cut off."
HMRC initially asked whether they needed help figuring out the missing contributions and the cost. The person said they did indeed already know these details. The tax office then sent them a link to the Government site for voluntary Class 3 NI contributions, but the individual said this information didn't resolve their issue.
The tax body then advised: "If you wish to make the payment online, you'll need a reference number issuing to you, by contacting an adviser on the helpline." They also provided a link for getting in touch regarding National Insurance matters. However, the taxpayer was unhappy with this response, saying that when they log into their account, "it says I am unable to make payment online".
HMRC further stated that an 18-digit reference number is necessary for making online payments, stressing: "You can't make an online payment without the reference number." The taxpayer reported further problems the next day, saying: "I tried what you advised and have been told I need to contact the Pension Service, disappointingly more going round in circles."
Now is an optimal time to see if you've got any gaps in your NI record that are worth topping up to boost your state pension. Under usual circumstances, you'd only be able to purchase contributions for the last six tax years but right now, the offer extends back an additional 10 years, to as far as the 2006/2007 tax year.
If you want to take advantage of this extended period to beef up your pension, you’ve got until April 2025. To find out if there are any holes in your contribution history, simply check your National Insurance record on the Government website.
The current full new state pension stands at £221.20 per week, while the basic state pension is £169.50 weekly. However, a large number of pensioners don't have the complete set of contributions, and hence receive less than these amounts.
Another rule to note is you need a minimum of 10 years' worth of NI contributions to qualify for any state pension at all. Come April, pensions are set to bump up by 4.1%, which will see the full new state pension rise to £230.30 a week, and the basic state pension will increase to £176.45 weekly.
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