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
-
Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
-
HMRC targets “dodgy shops” in new compliance crackdown
The government has announced a new crackdown on businesses suspected of facilitating tax evasion, with HMRC increasing its focus on so-called "dodgy shops" used to enable tax fraud. What is HMRC targeting?
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?