HMRC recently launched a new online service to make it easier for taxpayers to check for gaps in their National Insurance (NI) record and allow them to pay voluntary contributions to increase their State Pension.

The Check your State Pension forecast is designed to allow most users to view online how much pension they could get; when they can expect to receive it and how to increase it, if appropriate.  However the service is not available to those already receiving a pension or for taxpayers looking to fill gaps in their NI record from any time working abroad or self-employed.

The tool will show any gaps in your NI record and details of the voluntary contributions you would need to pay to fill the gaps, if it will be of benefit.  Payment can then be made through the online system.

There may be gaps in your NI record if there have been any periods when you have not paid any or enough NI, due to a range of factors. Any gaps in your NI record mean that you may not have enough years of NI contributions to receive the full State Pension and/or qualify for state benefits.

As we highlighted in a previous article, HMRC extended the deadline for paying voluntary contributions until 5 April 2025 for the tax years 6 April 2006 to 5 April 2018, to allow extra time for people to consider whether paying voluntary contributions is right for them.  After this time, taxpayers will only be able to pay contributions for the previous six tax years, in line with normal tax limits.

You can access the Check your State Pension forecast online at GOV.UK or through the HMRC app.  You will need to log in using your Personal Tax Account details.  If you don’t have an account, you can register at GOV.UK.

Contact us for more information on voluntary contributions and whether it’s the right decision for you.

Internet link: HMRC press release