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Taxpayers have been given more time to make voluntary National Insurance (NI) contributions to avoid missing out on the full State Pension.
The Government says it has listened to concerns over the imminent closure of a window, which allows people to voluntarily top up NI contributions for tax years dating as far back as 2006.
The Treasury has now extended the 5 April deadline to 31 July 2023 to give taxpayers more time to plug payment gaps in their records, thereby increasing the amount they receive in their State Pension.
Take action
The move came this week in a Written Ministerial Statement and HMRC is urging taxpayers to take action before the new deadline.
Anyone with gaps in their National Insurance record from April 2006 onwards now has more time to decide whether to fill the gaps. Any payments made will be at the lower 2022 to 2023 tax year rates.
Originally, the timeframe for making voluntary contributions was due to revert to the normal six years. That meant that in the 2023/24 tax year, it would only have been possible to make contributions going back to the 2017/18 tax year.
Victoria Atkins, the Financial Secretary to the Treasury, said: “We’ve listened to concerned members of the public and have acted. We recognise how important State Pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement.”
Part payment
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.
HMRC is advising taxpayers to take the following action before the new deadline:
· 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 for example, 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
Need help with National Insurance contributions and other taxation matters? Contact us today.
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