To ensure entitlement to the full UK New State Pension your employees need to review their National Insurance (NI) record by 31 July 2023 for any gaps in payment history that may affect their pension benefits in the future.
A temporary opportunity to voluntarily make up for any missed contributions for tax years dating back to 2006 will end in July. After this date, individuals will only be able to make additional contributions going back six years.
This means that in the 2023/24 tax year, it will only be possible to make contributions going back to the 2017/18 tax year.
At least 35 years of qualifying NI contributions are required to receive the maximum state pension, and a minimum of 10 years of qualifying contributions is necessary for a partial state pension.
Therefore, individuals should take the opportunity to check their NI record.
HMRC is advising taxpayers to take the following action before 31 July 2023:
- Check your NI record
- 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 (eg, 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
If you have queries about this upcoming deadline, please contact us.
