The cut off date for qualified persons to retroactively complete their national insurance contributions (NIC) for the timeframe between April 2006 and April 2016 has been further extended to 5 April 2025.
A shift towards the new state pension scheme has led HMRC to permit the completion of absent national insurance payments for the span from April 2006 to April 2016.
Fortunately HMRC is offering the option to make voluntary national contributions to address any deficiencies ensuring you receive the complete benefits of your state pension.
The government’s declaration on 12 June verifies that this extension will also be applicable to all NIC for the years that reach their six year payment period before 5 April 2025 which includes the tax years 2016/17 and 2017/18.
All corresponding voluntary NIC payments will be charged at the rates in effect during the 2022/23 tax year.
The current deadline is 31 July 2023 (as reported in March), having previously been set for 5 April 2023.
By moving the voluntary NIC deadline to 2025, it provides an assurance that men born after 5 April 1951 and women born after 5 April 1953 will not lose the opportunity to enhance their state pension entitlement.
Laura Trott, Minister for Pensions, Department for Work and Pensions, said:
“I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.
This extension means thousands more people will have time to check their entitlement, and in many cases increase the amount they receive when they retire.”
Who does the voluntary national insurance contributions apply to?
Anyone contemplating retirement may find it beneficial to address any shortcomings in their national insurance record.
Checking your national insurance record is also worthwhile if you fall into one of the following groups:
- Self employed individuals who didn’t pay their maximum possible contributions.
- Those with low income employment under pay as you earn.
- Those living or working outside the UK.
- Unemployed individuals who are not receiving benefits.
Paying voluntary contributions doesn’t necessarily enhance your state pension.
It’s recommended that you check your eligibility by reviewing your national insurance record from April 2006 onwards before initiating the process.
How do I check my national insurance contributions?
You can check your national insurance record online by using your personal tax account. It should give you everything needed:
- Examine the payments you’ve made up until the beginning of the present tax year (6 April 2023 at the time of writing).
- Determine if there are any gaps in your contributions or credits which would result in certain years not being considered towards your state pension (these are referred to as non qualifying years).
- Ascertain if you have the option to make voluntary contributions to close any gaps.
- How to make any voluntary payments and the associated costs.
Tony Shanks