Industry News - 4th April 2023
The government has announced that it is giving taxpayers more time to fill gaps in their National Insurance record, by extending the deadline to pay voluntary National Insurance contributions (NICs).
The original deadline of 5 April 2023 has been moved to 31 July 2023 following concerns that, due to high demand for NI and pension assessments, taxpayers would not have enough time before the deadline to weigh up the benefits of voluntary contributions.
Voluntary National Insurance contributions
If you have gaps in your NI record, for example if there have been any periods when you have not paid any or enough NI, due to a range of factors or you have not received NI credits, you now have the opportunity to fill those gaps and boost your future State Pension benefits.
Any gaps in your NI record mean that you will not have enough years of NI contributions to receive the full State Pension and/or qualify for state benefits.
Normally voluntary contributions can only be paid for the past six years, meaning you can make payments to fill any gaps as far back as 2016-17. However as part of a transition to the new State Pension arrangements, you can now go back and pay voluntary contributions for any incomplete years between April 2006 – April 2016.
Steps to take:
• Check your National Insurance record, as this will indicate if you have any gaps in your contribution
• Obtain a State Pension forecast
• Voluntary contributions do not always increase your State Pension – find out if you’ll benefit from making contributions and seek financial advice.