HMRC has issued a new press release reminding readers of a limited-time opportunity to enhance their State Pension. Currently, there is an opportunity for affected individuals to address gaps in their National Insurance Contributions (NICs) for tax years between April 2006 and April 2018. Originally set to end on 5 April 2023, this deadline has been extended several times and will now close on 5 April 2025. This means there are just under six months left for those who may benefit from this extension to act.
Usually, HMRC allows voluntary NIC contributions for the previous six tax years, with the deadline being 5 April each year. You can check your State Pension forecast and any gaps in your NICs by using the “Check Your State Pension” service on GOV.UK: https://www.gov.uk/check-state-pension. Since launching the service in April 2024, HMRC reports that over 10,000 payments totalling £12.5 million have been made through the digital service to help people boost their State Pension.
You might 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 they have low profits.
- You live outside the UK but want to qualify for some benefits.
If you fall into any of these categories, it may be worthwhile to apply for a State Pension forecast and assess whether making voluntary NICs to fill in any gaps would be beneficial. Keep in mind that not everyone will benefit, as this will depend on factors such as your age and NIC contribution history.