The clock is ticking to review your National Insurance record

If you’re considering claiming the UK state pension, you need to check your National Insurance (NI) record before 5 April 2023.

Are you eligible?

To be eligible for the maximum ‘new state pension’, you must have at least 35 qualifying years of NI contributions and have retired on or after 6 April 2016.

Even if you don’t have the full 35 years, you may still be eligible for partial payment of the ‘new state pension’ if you have contributed for a minimum of 10 years.

If your NI record started before 6 April 2016, you may need to contribute for more years to reach the required amount.

If you haven’t contributed enough, you may not be able to claim the full state pension when you reach retirement age.

Can you increase your contributions?

You may be able to top up your contributions by making voluntary NI contributions, which can normally only be made for the previous six tax years.

However, there is an extension currently in place which allows you to fill any gaps in your NI contributions history from 6 April 2006. But from 6 April 2023, the timeframe will revert to six years.

Therefore, in the 2023/24 tax year, you will only be able to make contributions going back to the 2017/18 tax year.

When considering making voluntary contributions, you must seek professional financial advice.

When should you review your record? Make sure you review your NI record before 5 April 2023 so that you can detect any gaps in your history

This will allow you to can detect any gaps in your NI history and ensure that your record includes NI contributions paid through PAYE or Self Assessment, as well as NI credits gained.

Having a complete National Insurance record is vital for receiving the full state pension, so if you spot any errors make sure you contact HM Revenue & Customs (HMRC) as soon as possible.

If you need advice on balancing salary and dividends, don’t hesitate to contact us today.

Blog right caret

Adapting your business plan for the summer

Blog

Tax implications to consider for business owners when paying themselves 

Blog

Research and Development tax relief changes 

Blog

Business right caret

Small business confidence dips ahead of new customs controls coming into force

Four in 10 exporters have reported a fall in international sales since the end of the Brexit transition period, a major study has revealed. According to the tracker, four in 10 – around 41 per cent of traders – have reported a “drop off” in international sales in the three months to September 2021.

Business

Large number of businesses looking to recruit more staff

It is perhaps a sign of confidence returning to the UK economy that a significant number of British businesses believe they will be recruiting staff over the coming year.

Business

Spring Statement 2022 summary

Mr Sunak found himself addressing MPs against a background of crisis, with the residual impact of COVID, the invasion of Ukraine and the cost-of-living crisis all affecting the economy in different ways.

Business

Cloud right caret

Cloud-powered accounting: Advancing beyond traditional cloud accounting systems

Cloud

Compliance right caret

HMRC asks sole traders to correctly report SEISS grants or “repay in full”

Sole traders who have not correctly reported their Self Employment Income Support Scheme (SEISS) grants may be forced to repay them in full, it has been warned.

Compliance

Making Tax Digital – what you need to know ahead of 2022-23

From April 2022 all VAT-registered businesses need to comply with MTD for VAT. MTD applies to taxpayers who file Income Tax Self Assessments for business or property income of more than £10,000

Compliance

Real-time online sanctions tracker to assist importers and exporters

Any business involved in international trade, whether importing, exporting or part of the supply chain supply to those firms, is faced with a rapidly changing regulatory environment.

Compliance

Economy right caret

Small businesses call for Government support to tackle climate change

According to new research, many are addressing energy usage, increasing recycling and investing in microgeneration, but only a third of those have a formal plan to tackle climate change within their business.

Economy

Hospitality bosses develop new strategies to cope with staff shortages

Hospitality business owners have responded positively to the staff shortages caused by the pandemic, by increasing wages and implementing improved staff retention strategies.

Economy

Everything you need to know about the new WTO Services Domestic Regulation

New World Trade Organisation (WTO) rules are set to cut the cost of global trade by billions of pounds every year, it has been announced.

Economy

SME right caret

Adapting your business plan for the summer

SME

Research and Development tax relief changes 

SME

Late payments – why they are so damaging to small businesses and how to deal with them

SME

Tax right caret

Understanding tax obligations for charities

Tax

Navigating estate planning and Inheritance Tax: what you need to know

Tax

Tax considerations for small business owners: Sole traders vs limited companies 

Tax

Tax Planning right caret

Almost 800,000 tax scams reported to HMRC in past 12 months, figures reveal

Nearly 800,000 tax-related scams were reported to HM Revenue & Customs (HMRC) in the past 12 months, a major study has revealed. According to the report, HMRC responded to 797,010 referrals of suspicious contact from the public in the last year. Around 358,000 of these involved scams where taxpayers were offered bogus tax rebates.

Tax Planning

Be aware of tax liabilities if you are using cryptocurrencies

For those who have dabbled in the market, its important for them to understand that there may be tax liabilities with Captial Gains Tax and Income Tax, with any transactions whether with currency or other crypto assets.

Tax Planning

Did you use a Bounce Back Loan to cover personal expenses during the pandemic? Act now to avoid tax consequences

If you received a Bounce Back Loan (BBL) during the coronavirus pandemic and took the cash as drawings, there may be additional tax consequences.

Tax Planning