Voluntary National Insurance Contributions
Article original published in Issue 6 – JT AccountS Newsletter
Voluntary National Insurance contributions can help make sure you have enough qualifying years to get the full State Pension. You need to make full contributions for a total of 35 years to obtain a full state pension.
Check your State Pension forecast online to find out how much you could get and, if need be, how you can increase it: https://www.gov.uk/check-national-insurance-record
If you do not have one already, you will firstly need to create a Personal Tax account for yourself. You will then be able to see:
– how much you are expected to receive when you reach pensionable age
– if you have any gaps
– if you’re eligible to pay voluntary contributions and how much it will cost
Gaps can mean you will not have enough years of National Insurance contributions to get the full State Pension. You may have gaps if you do not pay National Insurance or do not get National Insurance credits. This could be because you were:
– employed but had low earnings
– unemployed and were not claiming benefits
– self-employed but did not pay contributions because of small profits
– living abroad
You may also be eligible for National Insurance credits if you claim benefits because you cannot work, are unemployed or caring for someone full time.
You can then decide if you want to pay voluntary contributions as voluntary contributions do not always increase your State Pension. Contact the Future Pension Centre to find out if you’ll benefit from paying.
You can usually pay voluntary contributions for the past 6 years. The deadline is 5 April each year, however, the government has recently extended the deadline until 5 April 2025 to make voluntary contributions for the tax years 2016 to 2017 or 2017 to 2018.
OTHER NEWSLETTER TOPICS IN ISSUE 6:
Click above to read these article through the JT AccountS website or use the button to download a printable pdf version.
Related Newletters and Articles:
THIS NEWSLETTER TOPICS: Helping businesses tackle the current financial climate! – Director tax-efficient salary recommendations – The New Basis Period Reform – Voluntary National Insurance Contributions – Today not Tomorrow!
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Director tax-efficient salary recommendations, when is comes to starting a limited company.
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Jacqueline Tetley is licensed and regulated by AAT under licence number 5096.