Taxpayers will now have an extra four months until the end of July to make additional payments to their National Insurance contributions to increase state pension entitlements
The government has extended the voluntary National Insurance deadline by four months to 31 July 2023 to give taxpayers more time to fill gaps in their National Insurance record and help increase the amount they receive in state pension. They will also be able to top up their accounts at the lower 2022-23 tax year rates.
This comes after members of the public voiced concern over the previous deadline of 5 April 2023.
The deadline extension was announced in writing earlier today and HMRC is urging taxpayers to ensure they do not miss out.
The minister’s written statement confirmed the move after a surge in demand for the top-up service. ‘HMRC and DWP have experienced a recent surge in customer contact. To ensure customers do not miss out, the government intends to extend the 5 April deadline to pay voluntary NICs to 31 July this year,’ said Victoria Atkins, financial secretary to the Treasury.
‘This applies to years that would otherwise have been out of time to pay after 5 April, up to and including the 2016/17 tax year. All voluntary NICs payments will be accepted at the existing 2022/23 rates until the 31 July. We’ve listened to concerned members of the public and have acted. We recognise how important state pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement.’
Anyone with gaps in their National Insurance record from April 2006 onwards now has more time to decide whether to fill the gaps to boost their new state pension.
Paul Falvey, tax partner at BDO said: ‘It’s excellent news that the government is extending the time available for people to decide whether to fill in any gaps in their National Insurance record.
‘Making voluntary contributions won’t always increase your state pension entitlement, but for those who are eligible, a modest outlay to top up incomplete or full years missing from your record may mean a significant boost to your state pension.’
As part of transitional arrangements to the new state pension, taxpayers have been able to make voluntary contributions to any incomplete years in their National Insurance record which fell between April 2006 and April 2016, to help increase the amount they receive when they retire.
Eligible taxpayers can find out how to check their National Insurance record, obtain a state pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on gov.uk.
Taxpayers can check their National Insurance record, via the HMRC app or their Personal Tax Account.
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CAUTION: The above-mentioned write-up is extracted from various professional journals and articles including HMRC guidance notes where relevant.
