Deadline to back pay U.K. state pension approaching

kuma
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Re: Deadline to back pay U.K. state pension approaching

Post by kuma »

jane doe wrote: Tue Mar 21, 2023 2:11 pm What I'm not clear about, is that if they have received my application, but don't process it by the July deadline, they won't let me pay when they eventually evaluate it? Often on this kind of situation, once you're in, so to speak, they will process it and consider you to have applied by the deadline. But it sounds like people on this thread are saying that even if they take months to evaluate your claim, and as a result it overruns the deadline, you've lost. Is that right?
I can't see any properly published answers to this key question.

There was a post on this forum a few weeks back when an applicant stated that HMRC stated that the date of receipt was critical: viewtopic.php?p=27905#p27905

This HMRC Admin post on an HMRC forum suggests that (pre-extension, at least) the date of receipt was the critical date:
Posted about a month ago by HMRC Admin 2

Hi,

When you reside abroad, you need to complete an application form (CF83) to apply to pay voluntary National Insurance contributions. This form can be found on the GOV.UK website by searching for NI38 which is a leaflet providing further information about paying voluntary National Insurance contributions abroad, the CF83 is at the back of the leaflet.

We can consider payment of voluntary National Insurance contributions as far back as 2006 to 2007 tax year but your application form would need to be received by us before 5 April 2023 to be considered that far back. If we receive the application form after 6 April 2023 we can consider payment of voluntary National Insurance contributions from 2017 to 2018 onwards.

Once we have received the application, then we would check if you were eligible to pay voluntary National Insurance contributions and we would issue a shortfall of years available to pay. We cant confirm how much this would be but current voluntary rates are £3.15 per week at the class 2 rate and £15.85 per week at the class 3 rate.
https://community.hmrc.gov.uk/customerf ... 155d975a55

HMRC Admin 20 posts:
Please note, the deadline for paying for tax years from 2006-2007 to 2016-2017 has been extended to 31/07/2023.

Your CF83 will need to be received by HMRC before that date for those years to be considered, if you are eligible.
https://community.hmrc.gov.uk/customerf ... 155d975688

Given the processing times (I've heard 30+ weeks quoted), I think there would be a backlash if people were denied the opportunity of paying. The extension of the deadline supports the theory that HMRC recognises the difficulties people are facing, and are taking steps to be accommodating. Yet publication of the information you seek would be useful for you and many others...
Also, related to that, I sent mine from Japan by EMS to track it and get the arrival date registered. If the deadline is for receipt of my application, do you think proof of safe arrival will help?
Yes. Also, take copies of anything you send. Take the name and job title of anyone you speak to on the phone from HMRC/NI/Future Pension Centre/International Pension Centre. Hope for the best; prepare for the worst.
And again, anyone have any idea what the situation is like with post being held up by strikes? I understood that parcels get priority over ordinary letters, which was another reason I sent it registered.
Anyone have any experiences to share on this?
No experience to share. I think it's wise to send it registered.
kuma
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Re: Deadline to back pay U.K. state pension approaching

Post by kuma »

Also, this post is excellent and enlightening: viewtopic.php?p=29152#p29152

Sounds like things are okay if the application is received by 31st July.
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Roger Van Zant
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Re: Deadline to back pay U.K. state pension approaching

Post by Roger Van Zant »

Just read this article:

https://www.thisismoney.co.uk/money/pen ... 4wLjAuMA..
At current rates, this boosts your pension by £275 a year, rising to £303 from April. That's £6,060 over a 20-year retirement. This is the rate for Class 3 contributions, the most common type paid by workers.

Those who are self-employed typically pay at the Class 2 rate, which is much lower than for employees — currently £163.80 a year. This means it costs much less to fill in gaps in a record but generates the same boost in the state pension.
I am on schedule to have 34 out of 35 years paid in by the time I reach pensionable age.
I may go ahead and just back pay the one year, considering it will only cost me 163.80 quid! (versus 826.50 for a Class 3 payer).
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jane doe
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Re: Deadline to back pay U.K. state pension approaching

Post by jane doe »

Just for everyone's information, I sent my CF83 in by EMS, and it took 4 days to arrive (arrived 24th March) , so even if you're wondering about your application getting caught up in the post, if you register it, it should get through quickly.
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Re: Deadline to back pay U.K. state pension approaching

Post by soundofsilver »

Just a thought - can you still claim a UK pension if you take Japanese citizenship and therefore renounce British citizenship? Can you still pay in to the system? I think the answer to the former is yes (foreign workers who've paid in can claim, right?) but I'm less sure about the latter.

I am not yet seriously thinking about taking Japanese citizenship but it is definitely something I am considering long term, particularly since the JGov (disgracefully) locked out permament residents at the start of the pandemic...
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Re: Deadline to back pay U.K. state pension approaching

Post by beanhead »

soundofsilver wrote: Sat Mar 25, 2023 9:31 am Just a thought - can you still claim a UK pension if you take Japanese citizenship and therefore renounce British citizenship? Can you still pay in to the system? I think the answer to the former is yes (foreign workers who've paid in can claim, right?) but I'm less sure about the latter.

I am not yet seriously thinking about taking Japanese citizenship but it is definitely something I am considering long term, particularly since the JGov (disgracefully) locked out permament residents at the start of the pandemic...
Eligibility for the UK state pension is not related to nationality. So I don't see any reason why you would not be able to receive it if you have paid in.
If you are concerned about this risk, I suppose the only options are to decide not to pay the voluntary NICs, or to not take Japanese citizenship...
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Re: Deadline to back pay U.K. state pension approaching

Post by RetireJapan »

soundofsilver wrote: Sat Mar 25, 2023 9:31 am Just a thought - can you still claim a UK pension if you take Japanese citizenship and therefore renounce British citizenship? Can you still pay in to the system? I think the answer to the former is yes (foreign workers who've paid in can claim, right?) but I'm less sure about the latter.

I am not yet seriously thinking about taking Japanese citizenship but it is definitely something I am considering long term, particularly since the JGov (disgracefully) locked out permament residents at the start of the pandemic...
I'm also thinking about taking J-citizenship at some point. I will probably try to pay into the UK pension for as long as possible before doing so, just in case. I don't expect to have problems receiving the eventual pension.
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kuma
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Re: Deadline to back pay U.K. state pension approaching

Post by kuma »

soundofsilver wrote: Sat Mar 25, 2023 9:31 am Just a thought - can you still claim a UK pension if you take Japanese citizenship and therefore renounce British citizenship? Can you still pay in to the system? I think the answer to the former is yes (foreign workers who've paid in can claim, right?) but I'm less sure about the latter.

I am not yet seriously thinking about taking Japanese citizenship but it is definitely something I am considering long term, particularly since the JGov (disgracefully) locked out permament residents at the start of the pandemic...
The previous answers have this covered.

Just thought I'd link to the below thread:
viewtopic.php?p=13396#p13396

The thread discusses that there are probably significantly more UK state pension recipients in Japan than there are UK nationals of state pension age in Japan, implying that a significant number of non-British nationals are drawing a UK state pension in Japan (and presumably the majority of these are Japanese nationals, with a minority being third-country nationals).

Hats off to websites such as the below, which are presumably helping eligible Japanese people navigate the UK state pension system: http://yoshimura-sr.com/overseas/index. ... 8%E3%81%AF

And presumably there are a fair few Brits (including some on this forum?) whose family members are not British but have qualified/will qualify for a UK state pension.
Last edited by kuma on Sun Mar 26, 2023 3:49 pm, edited 1 time in total.
soundofsilver
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Re: Deadline to back pay U.K. state pension approaching

Post by soundofsilver »

Thanks, very interesting.
RetireJapan wrote: Sat Mar 25, 2023 11:29 am I'm also thinking about taking J-citizenship at some point. I will probably try to pay into the UK pension for as long as possible before doing so, just in case. I don't expect to have problems receiving the eventual pension.
I see. So, am I correct that it’d still be worth paying in as much of the 35 years as I can, even if it’s not the full 35 years? Sorry if this is a stupid question - just want to make sure.
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Re: Deadline to back pay U.K. state pension approaching

Post by Beaglehound »

soundofsilver wrote: Sun Mar 26, 2023 4:47 am Thanks, very interesting.
RetireJapan wrote: Sat Mar 25, 2023 11:29 am I'm also thinking about taking J-citizenship at some point. I will probably try to pay into the UK pension for as long as possible before doing so, just in case. I don't expect to have problems receiving the eventual pension.
I see. So, am I correct that it’d still be worth paying in as much of the 35 years as I can, even if it’s not the full 35 years? Sorry if this is a stupid question - just want to make sure.
As long as you reach the ten year minimum, yes.
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