If so, you should check the status of your National Insurance contributions as soon as possible to ensure there are no gaps. To qualify for a full State Pension, in general individuals are required to have 35 qualifying years of National Insurance contributions.
The good news is that it is possible to fill any gaps in your National Insurance record through the payment of voluntary contributions. Historically, it was only possible to pay contributions to cover the previous six years, but a government extension window has enabled the plugging of gaps dating back to April 2006. The original expiry of this window was 5 April 2023, but the deadline has recently been extended to 31 July 2023. In other good news, all voluntary contributions made during this additional period will also be at the lower 2022/23 tax year rates. Once this deadline expires, however, the maximum period for voluntary contributions will return to six years. This means that, after 31 July 2023, voluntary contributions made in the 2023/24 tax year can only be used to fill gaps going back to 2017/18.
This extension has come as a welcome relief for anyone who has struggled to reach crucial Government helplines before the previous tight deadline of 5 April 2023.
Who pays National Insurance?
Anyone who reaches retirement age on or after 6 April 2016 will qualify for the maximum State Pension, provided they have 35 qualifying years of National Insurance contributions. Different rules will apply for anyone with an earlier retirement date. To receive a part-payment State Pension, you will need to have paid contributions for a minimum of 10 years. If you have not made sufficient contributions, you might not be able to claim either a full or reduced State Pension.
How do I top up my contributions?
If you are worried about your National Insurance contributions, you can protect your access to the State Pension and other benefits by making Class 2 or Class 3 voluntary top-up payments, but before making any additional contributions, we recommend that you seek professional financial advice. This will help you assess whether you need to make further payments before you reach the state retirement age and can inform you about upcoming rule changes. We urge everyone to double check their National Insurance record, including contributions made through PAYE, self-assessment, and credits. If you think there are any errors in your record you should contact HMRC as soon as possible.
To check your National Insurance record, please click here. If you would like to check how much State Pension you’re likely to get, please click here.
Please note: You will need a Government Gateway user ID and password to check your National Insurance record and state pension forecast. If you do not have a user ID, you can create one before you check your record.
Need advice?
If you believe you have gaps in your National Insurance contributions and are concerned about the potential impact on your State Pension entitlement, please get in touch with Neela Chauhan, one of our tax partners. Neela will be able to guide you through the process of reviewing your contributions history and assisting you with any voluntary payments which may be required to maximise your State Pension.
