Voluntary National Insurance Contributions deadline extended to 202529/06/2023
In a move that could help thousands of people nationwide, the government recently granted an extension to the deadline for individuals to make voluntary National Insurance contributions (NICs).
HM Revenue & Customs (HMRC) has extended the initial deadline from 31 July 2023, to 5 April 2025, giving individuals additional time to complete any gaps in their National Insurance records that may date back to 2006.
The extension also offers many people who may not have previously thought about voluntary NICs the chance to learn more about the potential benefits of doing so for their financial security.
The cornerstone of the UK’s social security system, NICs give people access to a range of government benefits like the state pension, healthcare, and unemployment benefits. These payments are mandatory, and are deducted directly from employees’ wages. People need to have paid NICs for 35 years in order to be eligible for a full State Pension, and they must have at least 10 qualifying years in order to get any State Pension at all.
In certain situations, people may not meet the requirements for the collection of mandatory NICs due to a range of possible circumstances (such as being a student, living overseas, being unemployed, or having an income below the minimum criteria after which mandatory NICs are collected). Voluntary NICs are a useful tool by which people can fill-in any gap in their NIC history, making sure they satisfy all the requirements for state benefits.
Laura Trott, Pensions Minister, said: “I am pleased to see so many people taking steps to review their state pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record. This extension means thousands more people will have time to check their entitlement, and in many cases increase the amount they receive when they retire.”
However, if you are considering voluntary NICs, you should make sure to check that they will actually increase your state pension, as this is not guaranteed. If you would like any further information on voluntary NICs and whether making them would be a wise move for you, contact JW Hinks on 0121 456 0190.