As previously reported in enews
in some limited circumstances individuals who
have paid voluntary national insurance contributions
(NICs) may be entitled to a refund. HMRC have
now issued further guidance on the refund of
voluntary NICs, following the Paymaster General’s
announcement on 16 January 2007.
When the Pensions Bill becomes law, the number
of qualifying years needed to qualify for a
full basic State Pension will be reduced, from
39 years for women and 44 years for men, to
30 years for those reaching State Pension age
on or after 6 April 2010.
The Paymaster General issued a statement on
16 January 2007 concerning refunds of voluntary
NICs. HMRC have now provided more details about
the administrative arrangements for making
refunds following this statement.
HMRC will make refunds to people who apply
for a refund and satisfy the following conditions:-
- reach State Pension age on or after
6 April 2010;
- paid voluntary contributions
on or after 25 May 2006 (the date the Pension
White Paper was published) but before the
Pensions Bill receives Royal Assent (expected
to happen in Summer 2007); and
- were not aware of the changes when
they paid. This means that at the time they
paid they had not received information from
HMRC about the changes.
Internet Link:
HMRC NIC advice
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