Topping up NI Contributions – Deadline Extended

The Government have announced that taxpayers will have until the 31st of July 2023 to make Class 3 voluntary National Insurance (NI) contributions going back to April 2006. This will help them plug gaps in their contribution record.

State Pensions

To get a UK State Pension, you are required to have at least 10 qualifying years while full State Pension entitlement requires 35 qualifying years. Clients should log into their Government Gateway account to check their contribution record as they may be entitled to credit for missing years.

After logging in they need to take the following actions:

  • Identify any discrepancies between NI contributions p[aid and those showing on HMRC’s systems
  • Identify any NI credits that are missing from periods in which they should have received (For example: Universal Credit)
  • Identify any shortfalls in contributions
  • Contact HMRC if they think there are any errors
  • Decide whether to make voluntary NI contributions

Topping up NI Contributions

Contributions made between the 6th of April and the 31st of July 2023 will be at the Class 3 voluntary NI rates for the 2022/23 tax year – £15.85 per week.

Normally, it is only possible to make voluntary NI contributions for the past 6 tax years, to top up any missing or partial years of a taxpayer’s NI record. There is currently an extension in place that allows individuals to fill gaps in their NI contributes history from the 6th of April 2006 to the present date via voluntary contributions.

This was due to end on the 5th of April 2023.

From the 1st of August 2023, the timeframe for making voluntary contributions will revert to the usual six years. From that date, it will be possible to make contributions going back to the 2017/18 tax year only. Contributions will be made at higher voluntary NI rates of £17.45 per week.

These higher voluntary NI rates were due to apply from the 6th of April 2023, but will not apply where payments are made by the 31st of July 2023 under the extension.

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