Time is running out to check your National Insurance record

Are you planning on claiming the UK state pension? You must check your National Insurance (NI) record before 5 April 2023.

Are you eligible for the UK state pension?

To be eligible for the maximum ‘new state pension’, you must have 35 qualifying years of NI contributions. You will also need to have retired on or after 6 April 2016.

You must have contributed for a minimum of 10 years to receive part payment of the ‘new state pension’.

If your NI record began before 6 April 2016, you may encounter an increase in the number of years of NI contributions that are required.

What if you have not contributed enough?

If you reach state pension age and you have not contributed enough, there is a likelihood you will not be able to claim state pension or obtain the full amount.

To top up your contribution history, you may think about making voluntary NI contributions.

If you do decide to go down this route, it is vital that you obtain financial advice from a professional, so that everything is handled correctly.

What is the timeframe for making voluntary contributions?

You can fill gaps in your NIC history from 6 April 2006 to the present date by making voluntary contributions.

Typically, you can only make these contributions for the previous six tax years.

There is currently an extension in place but, from 6 April 2023, the timeframe will again revert to six years.

As a result, in the 2023/24 tax year, you will be able to make contributions going back to the 2017/18 tax year only.

Have you checked your NI record?

Before 5 April 2023, it is vital to check your NI record to detect any gaps in your NI history.

You must also ensure that your record includes NI contributions paid through PAYE or Self Assessment, and NI credits gained.

If there are any errors that need to be fixed, you must contact HMRC promptly.

Need advice on claiming state pension and checking your National Insurance record? Contact us today.