Voluntary National Insurance contributions payment deadline has been extended to April 2025.
Voluntary National Insurance contributions are used by taxpayers to fill gaps in their National Insurance record from April 2006 that may increase their State Pension.
Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to properly consider whether paying voluntary National Insurance contributions is right for them and ensures no one need to miss out on the possibility of boosting their State Pension entitlements.
The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken advantage to pay voluntary National Insurance contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.
All relevant voluntary National Insurance contributions payments will be accepted at the rates applicable from 2022 to 2023 until 5 April 2025.
Individuals who are planning for their retirement could benefit from the opportunity to complete gaps in their National Insurance record. Other people who may benefit include those who may have been:
- – employed but with low earnings
- – unemployed and not claiming benefits
- – self-employed who did not pay contributions because of small profits
- – living or working outside of the UK
Paying voluntary National Insurance contributions does not always increase your State Pension. Before starting the process, eligible individuals with gaps in their National Insurance record from April 2006 onwards should check whether they would benefit from filling those gaps.
Gaps in your National Insurance record
You may get gaps in your record if you do not pay National Insurance or do not get National Insurance credits. This could be because you were:
- – employed but had low earnings
- – unemployed and not claiming benefits
- – self-employed but did not pay contributions because of small profits
- – living or working outside the UK
Gaps can mean you will not have enough years of National Insurance contributions to either:
You may be able to pay voluntary National Insurance contributions to fill any gaps if you’re eligible.
Check your record for gaps
Check your National Insurance record to find out:
- – if you have any gaps
- – if you’re eligible to pay voluntary National Insurance contributions
- – how much it will cost
You may also be eligible for National Insurance credits if you claim benefits because you cannot work, are unemployed or caring for someone full time.
Contact HM Revenue and Customs (HMRC) if you think your National Insurance record is wrong.
Decide if you want to pay voluntary national insurance contributions
Voluntary National Insurance contributions do not always increase your State Pension.
If you’re below the State Pension age, contact the Future Pension Centre to find out if you’ll benefit from voluntary contributions.
If you’ve reached the State Pension age, contact the Pension Service to find out if you’ll benefit from voluntary contributions.
You may also want to get financial advice before you decide to make voluntary contributions.
Why you might want to pay voluntary national insurance contributions
You may want to pay voluntary contributions because:
- – you’re close to State Pension age and do not have enough qualifying years to get the full State Pension
- – you know you will not be able to get the qualifying years you need to get the full State Pension during your working life
- – you’re self-employed, file Self Assessment tax returns and do not have to pay Class 2 contributions because you have low profits
- – you live outside the UK, but you want to qualify for some benefits
Self-employed people with specific jobs
Some people do not pay Class 2 contributions through Self Assessment but may want to pay voluntary national insurance contributions. These are:
- – examiners, moderators, invigilators and people who set exam questions
- – people who run businesses involving land or property
- – ministers of religion who do not receive a salary or stipend
- – people who make investments for themselves or others – but not as a business and without getting a fee or commission
How can MCL Accountants help?
Contact MCL Accountants on 01702 593 029 if you would like us to assist you with any queries regarding voluntary national insurance contributions or if you need any assistance with the preparation and submission of your business accounts and self-assessment tax returns to HMRC.
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Ishan provides financial management, taxation and transactional advice to business entities of all sizes. His expert areas include statutory compliance, business taxation, personal tax & transactional processing and systems. Industry sectors include professional services, retail, hospitality and entertaining & media and advertising services.