New online service for voluntary contributions goes live
If you have gaps in your NI history, you can pay voluntary contributions to increase your entitlement to certain benefits, e.g. the state pension. You can now do this online. How do you access the new service?
If you have an incomplete contribution record for a particular tax year, you will receive a statement advising you of the position, usually about 20 months after the end of the year in question. The statement will also show the amount of voluntary contributions required to complete the contributions record for that year. This could be worthwhile if it is unlikely that future contributions from earnings will give you a full state pension, e.g. if you’re close to retirement age. If you're unsure whether an incomplete record exists for a previous year, you can check your contributions record via your personal tax account. HMRC has extended the deadline for making up any contributions shortfall as voluntary contributions can now be paid (at 2022/23 rates) by 5 April 2025 in respect of any years from 2006/07 to 2017/18.
The new service allows you to check whether paying Class 3 contributions is likely to increase your state pension entitlement, make a payment with an immediate confirmation, and is digital from end to end, i.e. you no longer need to contact HMRC for a reference number.
Related Topics
-
Could HMRC recategorise your subcontractors?
You use subcontractors for all your building projects and almost always the same individuals. You’ve heard that this could increase the risk of HMRC recategorising them as employees. What steps can you take to counter this?
-
Tribunal rejects reliance on adviser as reasonable excuse
A recent First-tier Tribunal decision has confirmed that relying on an accountant does not automatically amount to a reasonable excuse for missing a self-assessment deadline. The case highlights the limits of delegating tax responsibilities. What does this mean in practice?
-
HMRC issues new wave of offshore “nudge” letters
HMRC has issued a further round of “nudge” letters targeting individuals it believes may have undeclared offshore income or gains. The letters form part of HMRC’s ongoing use of data from international information exchange agreements. What should you do if you receive one?