Deadline To Top Up National Insurance Contributions Extended
Do you have any gaps in your NI record?
Posted by Roger Eddowes on 23/03/2023 @ 8:00AM
The UK government has recently announced an extension of the deadline for taxpayers to make voluntary National Insurance (NI) contributions to fill gaps in their NI records dating back to April 2006 ...
You can check whether you need to top up your National Insurance contributions online!
The new deadline is now set for 31 July 2023, providing individuals with additional time to identify and address any deficiencies in their NI contributions history. This move is designed to help taxpayers ensure their entitlement to the state pension and other benefits is unaffected by missing or partial years of contributions.
"Normally taxpayers can make voluntary NI contributions for the previous six tax years!"
A sufficient number of full years of National Insurance contributions are required for individuals to qualify for the full state pension and to be eligible for certain other benefits. However, those who do not have enough full years of contributions may face a reduced state pension or limited access to other benefits.
In response to this issue, an extension was introduced, permitting individuals to make voluntary NI contributions for the period between the 6th of April 2006 and the present day. This extension was initially set to expire on the 5th of April 2023. However, following the government's recent announcement, taxpayers now have until the 31st of July 2023 to make contributions in line with the 2022/23 voluntary NI rates.
During the extended period, taxpayers can make voluntary NI contributions at the rate of £15.85 per week, which reflects the 2022/23 tax year's rates. This offers an opportunity for individuals to take advantage of the lower rates and fill any gaps in their NI records before the deadline.
From the 1st of August 2023, the timeframe for making voluntary National Insurance contributions will return to the standard six-year period, allowing taxpayers to backdate contributions to the 2017/18 tax year only. At this point, the voluntary NI rates will increase to £17.45 per week.
This higher rate was initially scheduled to take effect on the 6th of April 2023, but the extension of the deadline has postponed its implementation for those who make their payments by 31 July 2023!
In summary, the UK government's decision to extend the deadline for making voluntary National Insurance contributions provides taxpayers with more time to address any gaps in their NI records dating back to April 2006.
However, it is crucial for individuals to take advantage of this opportunity before the deadline, as the standard six-year timeframe and higher National Insurance contribution rates will be reinstated from 1 August 2023.
If anything I've written in this blog post resonates with you and you'd like to discover more about your national insurance record and whether you need to top it up before the deadline, it may be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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