More time to top-up NICs
In some circumstances it can be beneficial to make voluntary National Insurance Contributions (NICs) to increase your entitlement to benefits, including the State or New State Pension.
Usually, HMRC allow you to pay voluntary contributions for the past 6 tax years. The deadline is 5 April each year. However, there is currently an opportunity for people to make up for gaps in their NICs for the tax years from April 2006 to April 2017 as part of transitional measures to the New State Pension. This deadline was set to expire on 5 April 2023 but has now been extended until 31 July 2023 after the government accepted significant public concern that many taxpayers would not meet the deadline.
You might want to consider making voluntary NICs if:
- You are close to State Pension age and do not have enough qualifying years to get the full State Pension.
- You know you will not be able to get the qualifying years you need to get the full State Pension during the remainder of your working life.
- You are self-employed and do not have to pay Class 2 National Insurance contributions because you have low profits.
- You live outside the UK but want to qualify for certain benefits.
If you fall within any of these categories, it may be beneficial to get a State Pension forecast and examine whether you should consider making voluntary NICs to make up missing years, known as topping up. Not everyone will benefit from making voluntary NICs and a lot depends on how close you are to retirement age and your NIC payments to date. If you think this opportunity may be relevant to your circumstances, please be in touch.
- Green finance projects receive government backing - June 1, 2023
- Paying work-related expenses? Do not forget to claim - May 30, 2023
- The power of management accounting and cloud software for SMEs - May 25, 2023
- Rising cost of fuel and groceries fall under spotlight - May 23, 2023
- Government cash for industries to boost economy and cut emissions - May 18, 2023
- Millions of pounds saved as tide is turned on benefit fraudsters - May 16, 2023
- Tax change supports low-earning savers - May 11, 2023
- Restaurant and bar staff to benefit from new tipping law - May 9, 2023