Time is Running Out: Did you know there's a limited-time opportunity to maximize your future state pension? The government is offering individuals a chance to fill gaps in their National Insurance (NI) contributions until April 5, 2025. This means you can boost your retirement income significantly!
For full state pension entitlement, you must have a sufficient NI history. To allow people to catch up on their NI contributions, the government permits payments of class 3 NI (also known as voluntary contributions) at a fixed rate. Usually, this can be done for the last six years; however, a current incentive is available that lets you pay your voluntary contributions back to 05 April 2006.
The original date for the scheme ended on 5 April 2023 but was extended to 31 July 2023 back in March. It has since been extended again up to 5 April 2025. This gives people an amazing opportunity to catch up and pay their contributions at the Class 3 rate for 2022/23, which was £15.85 per week. It is important to get this done because once the deadline has passed, the window of opportunity to pay your voluntary NI will revert to the standard six years.
If you have been out of the country, not earning or are approaching retirement, it is essential to check your NI contributions now to ensure you receive the maximum state pension possible. This can be done by: clicking here and signing into your government gateway, calling HMRC on 0300 200 3500, or even by writing to them; more relevant contact information can be found on their website.
If you want to make sure you are eligible to pay your Voluntary NI contributions, have a look at HMRC's guidance.
Did you know that starting from your 2024/2025 tax return, Class 2 NI will no longer have to be paid to achieve state pension entitlement for that year? To learn more about this, read our National Insurance Tax Cuts Article.
Don't miss this chance to secure your future state pension. If you have any questions or need help, contact Short and Sons Accountants for expert guidance.