HMRC have extended the deadline for making voluntary National Insurance contributions (which can date back to 6 April 2006), to 31 July 2023.
What is National Insurance?
National Insurance is a tax paid by individuals who are employed or self-employed, based on how much they earn then determines how much National Insurance is contributed from their wages/income.
National Insurance contributions are used for a variety of purposes, however one of the main purposes is the State Pension.
What is the State Pension?
The State Pension is paid to individuals once they reach ‘State Pension age’. The State Pension age varies, depending on the year of birth.
If you are planning on claiming the State Pension, you must have 35 qualifying years of NI contributions to ensure payment of the full state pension. Individuals who have not contributed enough towards their qualifying years, may receive only part of the pension or not receive it at all.
How far back can NI contributions be made?
Voluntary contributions can usually be made for tax years dating back 6 years from the current tax year. HMRC have however, provided a temporary extension for voluntary contributions to be made for tax years dating back to 6 April 2006. This gives those with missing qualifying years, the opportunity to increase their contributions to receive the full State Pension.
How do I check my NI contributions?
If you’d like to check how many qualifying years you have contributed towards or are unsure how many years you have contributed towards, head to the link below:
https://www.gov.uk/check-national-insurance-record
How we can help you
If you’d like to discuss your finances or enquire about our services, call us on 01228 904904 or pop us a message at mail@seavorchartered.co.uk.
