The Government has recently announced an extension to the deadline for individuals to pay voluntary National Insurance contributions (NICs), in a move that will benefit thousands of people across the country.
The original deadline of 31 July 2023 has now been pushed back to 5 April 2025 by HM Revenue & Customs (HMRC), ensuring that people have more time to fill in the gaps in their National Insurance records that they may have, going back to 2006.
The extension also gives many who may not have considered voluntary NICs in the past the chance to investigate the positive impact that doing so may have on their financial well-being.
National Insurance contributions
NICs are the backbone of the social security system in the UK and entitle individuals to various state benefits such as the state pension, healthcare services and unemployment benefits.
NICs are mandatory and taken from an individual’s wages. To qualify for a full State Pension, people need to have made these contributions for 35 years and must have at least 10 qualifying years to ensure they get any proportion of the State Pension.
In some cases, individuals may fall short of these criteria due to scenarios such as being out of work for a period, studying, living abroad, or being employed on a low income.
Voluntary NICs are therefore a beneficial way for individuals to top up these gaps and ensure that they met the qualifying criteria.
With the deadline now being pushed back by nearly two years, thousands of people have already started to take advantage and are able to boost their NICs where previously they would not have been able to do so.
Pensions Minister Laura Trott 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.”
In some cases, paying voluntary NICs does not always increase an individual’s State Pension, so it is important to check that making voluntary contributions will be of benefit.
If you would like more advice on paying voluntary NICs, please contact us today.