Deadline for voluntary NI contributions extended
There's currently a window of opportunity to fill gaps in your NI contribution history. This was scheduled to close after 5 April 2023, but the government has now extended it. What's the new deadline?
Entitlement to the state retirement pension depends on accruing sufficient qualifying years - those where enough NI is paid, or are treated as being paid. Gaps in work can lead to missing out on qualifying years, meaning entitlement to a full pension may not be achieved. In some cases, it's possible that the minimum number of years to receive anything (currently ten years) may not be achieved.
To rectify this, you can fill gaps by making voluntary Class 3 payments. Usually, you can only do this for the past six years. However, it's currently possible to make contributions for years right back to April 2006. This opportunity was due to end on 5 April 2023, but the government has just announced an extension to 31 July 2023. If you're concerned about your entitlement, check your contribution history via your personal tax account. Remember to consider the years you have left to work before making any payments though.
Related Topics
-
Practical guide: Tax-efficient will planning with residential property
An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the reservation of benefit rules?
-
Will HMRC treat late processed invoices as errors?
Your business processes invoices when they have been approved by budget holders, so some will be processed a month late, delaying your input tax claim. How might HMRC’s updated guidance help here?
-
Are redundancy payments tax deductible?
A seemingly simple question we’re often asked is how much tax relief a business is entitled to for redundancy payments. The answer is that it depends on the situation. How might the circumstances of a redundancy affect the tax deduction?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.