People planning to claim the UK state pension have been advised to check their National Insurance (NI) record to identify any shortfalls in their payment history. NI contributions, or lack of them, can affect a person’s entitlement to the state pension in later life.
A temporary window which allows people to voluntarily top up NI contributions for tax years dating as far back as 2006, will now close on 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.
This gives additional time on top of the original 5 April deadline for individuals to make the additional contributions required.
HMRC has confirmed that “where the rates of voluntary National Insurance contributions were due to go to up from 6 April 2023, payments made by 31 July 2023 will be paid at the lower rate.”
Filling Payment Gaps
To ensure people were able to claim their full pension, the Government had put a temporary extension in place enabling people to fill any gaps in their NIC history.
However, from 31 July 2023, the timeframe for making voluntary contributions will revert to the normal six years.
It will only be possible to make contributions going back to the 2017/18 tax year only.