This site uses cookies. By continuing to browse you are agreeing to our use of cookies. Find Out More
Anyone planning to claim the UK state pension at retirement should check their national insurance (NI) record before 5 April 2025. Currently, voluntary contributions can be made to plug gaps back to April 2006, but this will not be possible after April 2025.
Given the deadline date is fast approaching, there is a benefit in securing a call back from HMRC. With any requests made ‘before’ 5th April 2025, you will be able to pay your NI contributions even after the deadline has passed. The link below will allow you to request a call back.
https://secure.dwp.gov.uk/request-a-call-back-to-pay-voluntary-national-insurance-contributions/contact-form
Additionally, any individuals who are living abroad – whether British or others (from countries having reciprocal agreement with the UK) – and previously worked in the UK and paid NIC, they will be able to make up any gaps after 5th April 2025 by completing the form CF83 now, before 5th April 2025.
These individuals may be able to pay voluntary class 2 NIC instead of class 3 NIC, if they work abroad. The link below allows you to apply to pay voluntary National Insurance Contributions when working abroad.
https://www.gov.uk/guidance/apply-to-pay-voluntary-national-insurance-contributions-when-abroad-cf83
National insurance contributions (NIC) are normally made by employed and self-employed individuals based on their earnings above the statutory thresholds which are set annually. Individuals may also receive National Insurance Credits in certain circumstances. These NI contributions or credits make up a person’s NIC qualifying history, which may affect their entitlement to the state pension as well as other benefits, such as employment and income support allowance.
In general, to qualify for the maximum ‘new state pension’ (received by those retiring on or after 6 April 2016) a person must have 35 qualifying years of National Insurance Contributions. For entitlement to a pro rata part of the ‘new state pension’ a person must have contributed for at least 10 years. For those who reached state retirement age before 6 April 2016, different rules applied.
If individuals have not contributed enough prior to reaching the state pension age, they may not be able to claim state pension at all (if qualifying contributions are under 10 years) or will receive a reduced state pension amount if they have not attained the full 35 year contribution record.
To protect your state pension and other benefits it may be beneficial for people to make voluntary Class 3 NI contributions to top up their contribution history, potentially increasing the amount of state pension they will receive. Advice is recommended when making that decision as it requires predicting, to an extent, what contributions will be made before state retirement age and whether or not you intend to carry on working until state pension retirement age.
Normally, it is only possible to make voluntary contributions for the past six tax years. Currently there is a temporary extension in place and individuals can fill gaps in their NIC history from 6 April 2006 to the present date by making voluntary contributions. However, from 6 April 2025, the deadline for making voluntary contributions will revert to the normal six years. This means that in the 2025/26 tax year, it will only be possible to make contributions going back to the 2019/20 tax year.
Individuals should therefore take this opportunity to check their NIC record to identify any shortfalls in their NI history.
Taxpayers should also check that their record includes NI contributions paid through PAYE or self-assessment, and also any NI credits have been included.
Actions to take before 5 April 2025:
Click Here to check your own National Insurance Contribution
Peter undertook business studies at Kingston University after leaving school and then accepted a place working for the Inland Revenue, working firstly at Walton on Thames and then promoted and relocated to Richmond. He was then offered a job with Wilkinson Latham, a small firm of Chartered Accountants, where he had worked for over 27 years and finally became a partner, before joining the tax team at WSM in 2014. In his spare time, you may occasionally find him at Box Hill with his beloved Classic Dragstar Motorbike.
The issue We understand that Angela Rayner has ‘got off’ without a penalty for underpaying around £40,000 of SDLT on a house
The issue It is not uncommon for shareholders to lend personal funds to a company to allow it to meet various business expenses.
The issue There has been lots of press around Property 118 (P118) over the last few years. Currently, if worst comes to
