Taxpayers given more time for voluntary National Insurance contributions
The UK government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to fill gaps in their National Insurance record and help increase the amount they receive in State Pension.
This comes after members of the public voiced concern over the previous deadline of 5 April 2023.
The deadline extension was announced via a Written Ministerial Statement last week and HM Revenue and Customs (HMRC) is urging taxpayers to ensure they do not miss out.
Anyone with gaps in their National Insurance record from April 2006 onwards now has more time to decide whether to fill the gaps to boost their new State Pension. Any payments made will be at the lower 2022/23 tax year rates. As part of transitional arrangements to the new State Pension, taxpayers have been able to make voluntary contributions to any incomplete years in their National Insurance record between April 2006 and April 2016, to help increase the amount they receive when they retire. And after an increase in customer contact, the government has extended the deadline to ensure people have time to make their contributions.
To qualify for the new maximum state pension, you must have at least 35 years of qualifying NI contributions.
You may only receive a part payment if you don’t qualify for a full state pension, and you need a minimum of 10 qualifying years to receive a partial state pension.
Individuals should therefore take the opportunity to check their NI record to identify any shortfalls in their NI history.
HMRC is advising taxpayers to take the following action before 31 July 2023:
- 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 (eg, 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
If you have any questions please drop us an email or give the office a call on 01332 292022.
