 August
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
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