Deadlines for making voluntary NIC top-ups

In certain circumstances it can be beneficial to make voluntary National Insurance Contributions (NICs) to increase entitlement to future benefits, including the State or New State Pension for self-employed persons.

You might want to consider making voluntary NICs if:

  • You are close to State Pension age and do not have enough qualifying years to get the full State Pension
  • You know you will not be able to get the qualifying years you need to get the full State Pension during the remainder of your working life
  • You are self-employed and do not have to pay Class 2 National Insurance contributions due to a history of low profitability
  • You live outside the UK but want to qualify for benefits.

If you fall within any of these categories, it may be beneficial to apply for a State Pension forecast and examine whether you should consider making voluntary NICs to make up missing years, known as topping up. Not everyone will benefit from making voluntary NICs and much will depend on how close you are to retirement age and your NIC payments to date.

Usually, HMRC allow you to pay voluntary contributions for the previous six years. The deadline is 5 April each year. This means that you have until 5 April 2023 to make up for gaps for the tax year 2016-17.

There are also transitional measures in place that allow men born after 5 April 1951 and women born after 5 April 1953 to make up for gaps in NICs between tax years April 2006 and April 2016. This opportunity ends on 5 April 2023 when the maximum allowable number of voluntary contributions will be limited to six years as per the previous paragraph.

Source: HM Revenue & Customs Tue, 31 May 2022 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a