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10th March 2023
Have you checked your National Insurance Contributions record recently? Until 31 July 2023, the option exists to top up any missing or incomplete National Insurance Contributions all the way back to tax year 2006/07. However, from 1 August 2023 this is being heavily restricted to just a 6 year claim (earliest year to claim 2017/18).
Generally, individuals require 35 years of National Insurance Contributions in order to be eligible for the maximum ‘New State Pension’. However, some individuals may require additional qualifying years, for example if they have been contracted out of National Insurance at some point historically.
Qualifying years are usually obtained by making Class 1 National Insurance Contributions (through employment) or Class 2 National Insurance Contributions (through self-employment). Individuals in receipt of certain state benefits may be eligible for National Insurance credits, which also result in qualifying years.
It is often cost effective to make voluntary contributions (Class 3 National Insurance Contributions) in order to ensure a full State Pension entitlement. These voluntary contributions can be made retrospectively to cover any gaps in previous years from 6 April 2006 onwards.
However, from 1 August 2023, the earliest year for which individuals will be able to make voluntary contributions will be the 2017/18 tax year (6 tax years prior).
We would advise that you check your National Insurance record before 31 July 2023 to identify any gaps in your National Insurance history by using this government service:
https://www.gov.uk/check-national-insurance-record
If you identify any gaps, or discrepancies, then please get in touch with your usual contact at Thompson Jenner to discuss whether a voluntary payment would be a good idea.
