Deadline extended for voluntary National Insurance contributions
The Government has extended the deadline for making voluntary National Insurance (NI) contributions to help individuals avoid missing out on their full State Pension.
This move comes after the Government took note of concerns expressed by the public, over the closing window for a voluntary top-up of NI contributions, dating back as far as 2006.
The Treasury has responded positively to these concerns and extended the previous deadline of 5 April 2023 to 31 July 2023.
This gives taxpayers more time to fill in any payment gaps in their records, which will help increase their State Pension benefits.
Spring into action
A Written Ministerial Statement was released this week and the HM Revenue & Customs (HMRC) has urged taxpayers to take advantage of this new deadline.
The extended deadline is ideal for those who have gaps in their National Insurance record from April 2006 onwards. Individuals now have more time to consider filling in the gaps. These payments will be made at the lower 2022 to 2023 tax year rates.
Originally, the timeframe for making voluntary contributions was due to revert to the standard six years, meaning that it would only have been possible to make contributions dating back to the 2017/18 tax year in the 2023/24 tax year.
Victoria Atkins, the Financial Secretary to the Treasury, has emphasised the Government’s commitment to ensuring retired individuals receive their rightful State Pension entitlement. This move will help bolster their entitlement and help provide financial security in retirement.
Partial payments
If you believe yourIf you’re looking to receive the new maximum State Pension, you’ll need to have made at least 35 years’ worth of qualifying National Insurance contributions. However, if you don’t meet this requirement, you may still be eligible for a partial State Pension. To qualify for this, you will need to have made a minimum of 10 qualifying years’ worth of National Insurance contributions. To ensure that you benefit from the extended deadline, HMRC is recommending that taxpayers take the following steps before the new deadline:
- Check your NI record via the HMRC app or through your Personal Tax Account
- Identify any differences between NI contributions paid and those showing on HMRC’s system
- Identify any shortages in your NI records
- Identify any NI credits that are missing from periods in which you should have received them
- Contact the HMRC if you think there are any errors
- Decide if you want to make voluntary NI contributions business will require more support, we can offer guidance during this time on adapting your business plan, applying for relevant funding and maintaining your cash flow during the economic downturn.
Do you need any advice on National Insurance contributions or other tax matters? Please get in touch today.