UPDATE: 7 MARCH 2023 – The government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to fill gaps in their National Insurance record and help increase the amount they receive in State Pension. READ MORE.
19 FEBRUARY 2023
If you have reached state pension age on or after 6 April 2016, you fall under the new state pension system.
Your state pension is based on your National Insurance record when you reach State Pension age. In order to get the full state pension, under the new system, you will likely need at least 35 years of National Insurance Contributions (NICs). The full state pension is currently £185.15 per week.
If you have any gaps in your National Insurance record, it is now worth checking your National Insurance records and filling the gaps by making voluntary contributions for the past six years. Therefore, you have until 5 April 2023 to make up gaps for the tax year to 5 April 2017.
Depending on your age, you are able to pay for gaps from more than six years ago. If you are a man born after 5 April 1951 or woman born after 5 April 1953, you have until 5 April 2023 to pay voluntary contributions to fill gaps between April 2006 and April 2016. After 5 April 2023 you will only be able to pay for voluntary contributions for the past six years. So, the clock is ticking and now it’s the right time to check if you have any gaps in your national insurance records and consider making voluntary contributions to make up for the gaps.
How to check your National Insurance record
You are able to check your National Insurance record online. For this, you need a Government Gateway user ID and password. If you do not have a user ID, you can create one before you check your record. Check your National Insurance record – GOV.UK (www.gov.uk)
You can also request a printed National Insurance statement online or by phone. Or write to HMRC to request your National Insurance statement:
NIC and Employers Office
HM Revenue and Customs
BX9 1AN
Voluntary contributions to make up gaps
Depending on your situation, you may be eligible to pay Class 3 or Class 2 National Insurance Contributions (NICs) to make up the gaps.
If you are self-employed, you may be eligible to make the Class 2 NICs. Currently it is £3.15 per week.
If you are employed but earnings are under £123 a week or unemployed and not claiming benefits, you may be eligible to make Class 3 NICs. Currently it is £15.85 per week.
If you claim benefits, you may be eligible for National Insurance Credits.
Please note that the above voluntary contributions do not necessarily increase your State Pension. We would suggest you contact your financial advisor for financial advice or Contact the Future Pension Centre – GOV.UK (www.gov.uk) to find out if you will benefit from voluntary contributions.
If you have any questions in relation to your National Insurance record and state pension entitlement, please contact Neil Groves, Tax Partner at Beavis Morgan on T. 020 7549 2411 or E.neal.groves@beavismorgan.com.