The government recently launched a new digital service called Check Your State Pension forecast, a joint service between the Department for Work and Pensions (DWP) and HMRC, which handle the State Pension and National Insurance, respectively.
The new digital service enables citizens to address gaps in their National Insurance (NI) contributions, which can affect their State Pension eligibility and pay. Identifying gaps in NI records and making voluntary payments to fill them is now made easier, all without needing to call for a reference number.
Normally, NI contributions are made by employees and the self-employed based on their earnings, whilst some individuals receive NI credits. With the full online service, people can easily see if paying voluntary NI will increase their State Pension, as well as verify if any contributions or credits are missing from the record.
If there are gaps in their NI record, individuals may want to consider making voluntary contributions. However, they should assess if they will accumulate enough qualifying years before their expected state retirement age, which may make voluntary contributions unnecessary. Making this decision can be complex and may require individualised advice.
Previously, taxpayers had to call HMRC for a payment reference. This is now scrapped, and taxpayers can now easily confirm payment and update NI records. Additionally, they can now fill gaps in their NI record from 6 April 2006 to 5 April 2018 by making voluntary contributions before 5 April 2025.
The online service, however, is not available to those already receiving their state pension, the self-employed, or individuals with gaps from working abroad. HMRC’s guidance provides alternatives for managing the NI record for these groups.
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