The deadline for making National Insurance Contributions dating back to April 2006 had previously been set as 5th April 2023, but the government has now extended it to 31st July 2023.
Anyone who hopes to claim the UK state pension should check their national insurance (NI) record ahead of the deadline on 31st July. Your NI record is made up of the NI contributions that you have made throughout your life, as well as any NI credits you have received. NI contributions are paid by employed individuals earning over £242 per week; or self-employed individuals who make over £11,908 in profits per year. If you do not earn above the threshold to pay NI, then you may be eligible to receive NI credits, so that you will still qualify for UK state pension.
As it currently stands, any gaps in your NI record dating back to April 2006 can be filled in by making voluntary contributions. This is a temporary extended time frame, however, and is set to end on 31st July 2023. Following this, you will only be able to make voluntary contributions going back six years.
It’s important to check your NI record before this deadline and fill any gaps where you can. This is because to qualify for the maximum ‘new state pension’, you must have 35 years of NI contributions on your record. Similarly , to receive part payment of the ‘new state pension’, a minimum of 10 years worth of NI contributions are required. The ‘new state pension’ is received by anyone retiring on or after 6th April 2016. If your NI record started before 6th April 2016, you may be subject to different rules, such as a higher number of required years of contributions or credits before you can receive the full state pension.
What to do if you think your NI record is wrong…
The last thing you want is to be caught out by unexpected gaps in your NI record when you eventually come round to receiving a state pension. By staying informed about your NI record, you’ll be able to check if it shows NI contributions paid through PAYE or self assessment, as well as any credits earned. You can check your NI record by logging on to GOV.UK; if it’s inaccurate then you should contact HMRC to discuss any errors.
ICAEW have shared a suggested checklist for actions to take ahead of the deadline on 31st July:
- check your NI record
- identify any discrepancies between NI contributions paid and those showing on HMRC’s system
- identify any NI credits that are missing from periods in which they should have been received (e.g. on receipt of universal credit or child benefit)
- identify any shortfalls in contributions
- contact HMRC if you think there are any errors
- decide whether to make voluntary NI contributions
Before making voluntary contributions, we’d recommend speaking to a member of our team, so that we can help to predict whether it will benefit your state pension allowance.
For more advice, speak to Chris Barlow:
+44 (0) 1 942 816 512
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