News
September 2007
Refund of Voluntary NICs
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
