You need to have a complete National Insurance (NI) record to ensure that you qualify for the maximum State Pension.
The original deadline for updating the record was 5 April 2023 but this has been pushed back to 31 July 2023, as announced in a Written Ministerial Statement.
What steps should you take?
You can fill in any gaps in your NI record from April 2006 onwards until the deadline. After 31 July 2023, the timeframe to fill gaps will revert to six years.
Any payments before the deadline will be made at the lower 2022 to 2023 tax year rates.
HMRC is advising taxpayers to take the following action before the new deadline:
· Identify any discrepancies between NI contributions paid and those showing on HMRC’s system
· Identify any NI credits that are missing from periods in which they should have been received for example, on receipt of universal credit or child benefit)
· Identify any shortfalls in contributions
· Contact HMRC if you think there are any errors
· Decide whether to make voluntary NI contributions
Are you eligible for the new maximum State Pension?
To qualify for the new maximum State Pension, you must have at least 35 years of qualifying NI contributions.
However, if you don’t qualify for a full State Pension, you may still receive a partial payment.
To receive a partial State Pension, you need a minimum of 10 qualifying years.
To ensure you receive the maximum State Pension, having a complete National Insurance record is essential.
Contact our team today for advice on this and related matters.