To assist individuals in obtaining their full State Pension entitlement, the government has extended the deadline for voluntary National Insurance (NI) contributions.
The previous deadline of 5 April 2023 has been extended to 31 July 2023, in response to public concerns regarding the limited window for top-up contributions dating back to 2006.
As per a Written Ministerial Statement released this week, HM Revenue & Customs (HMRC) has encouraged taxpayers to take advantage of this new deadline.
The extended timeframe is particularly beneficial for individuals who have gaps in their NI records from April 2006 onwards, as they now have more time to consider filling these in. Payments will be made at the lower tax rates applicable in the 2022-2023 tax year.
The original deadline for making voluntary contributions would have been limited to the standard six-year timeframe, allowing for contributions dating back to the 2017/18 tax year in 2023/24.
The extension provides taxpayers with greater opportunity to fill gaps in their records and improve their State Pension benefits.
The Financial Secretary to the Treasury, Victoria Atkins, has reaffirmed the government’s commitment to ensuring that retired individuals receive their full State Pension entitlement, adding that this extension will help boost their pension benefits and provide greater financial security in retirement.
To receive the maximum State Pension, individuals must have made at least 35 years of qualifying National Insurance contributions.
If this requirement is not met, partial State Pension may still be available with a minimum of 10 qualifying years of contributions.
To take advantage of the extended deadline, HMRC recommends taxpayers take the following steps before the new deadline:
- Check their NI record through the HMRC app or Personal Tax Account
- Identify any discrepancies between their paid NI contributions and those recorded by HMRC
- Identify any gaps in their NI records
- Identify any missing NI credits from periods where they should have received them
- Contact HMRC if any errors are suspected
- Determine if voluntary NI contributions are desired.
If you need advice on National Insurance rates and rules, please speak with our experienced team today by emailing email@example.com or calling 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 27 March 2023.