You will now have more time to make any voluntary National Insurance (NI) contributions, as the deadline has been extended.
A Written Ministerial Statement on 7 March 2023 announced that the original deadline of 5 April 2023 has been pushed back to 31 July 2023, in response to public concerns about the closure of the voluntary contribution window.
This extension will give you more time to fill gaps in your records and help you to avoid missing out on the full State Pension.
What steps should you take?
In the statement, HM Revenue & Customs (HMRC) urged taxpayers to take action and ensure their NI record is up-to-date.
You can fill in any gaps in your NI record from April 2006 onwards until the deadline. After 31 July 2023, the timeframe to fill gaps will revert to six years.
Any payments before the deadline will be made at the lower 2022 to 2023 tax year rates.
HMRC is advising taxpayers to take the following action before the new deadline:
· 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 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
Are you eligible for the new maximum State Pension?
To qualify for the new maximum State Pension, you must have at least 35 years of qualifying NI contributions.
However, if you don’t qualify for a full State Pension, you may still receive a partial payment.
To receive a partial State Pension, you need a minimum of 10 qualifying years.
To ensure you receive the maximum State Pension, having a complete National Insurance record is essential.
Contact our team today for advice on this and related matters.