GRAB THE OPPORTUNITY
BRIDGE THE GAPS IN NATIONAL INSURANCE CONTRIBUTIONS
AND AVAIL THE FULL STATE PENSION
NIC is the tax paid by employees, self-employed, and employers on behalf of their employees. It can help you qualify for certain benefits such as state pension and other allowances depending on the type of NIC, the adequacy of payments, and the NIC record. Individuals may also receive National Insurance credit if they qualify for it.
Several factors decide the level of payment and the type of NIC payable, including type and level of earnings, residence status, and age.
New State and Basic Pension
The individuals attaining the state pension age on or after 6 April 2016 can claim the New State Pension, which is based on the NIC history and requires having 35 qualifying years of national insurance payment to claim any state pension, which doesn’t need to be consecutive. Those retiring before 6 April 2016 will get Basic State Pension but must have 30 qualifying years.
You can only get full out of your state pension scheme if you have contributed enough towards your state pension; sometimes, it is favorable to make voluntary National Insurance Contributions to attain the State Pension Status.
GRAB THE OPPORTUNITY WHILE THERE IS STILL TIME
UPDATE YOUR NI RECORD.
If you have yet to contribute enough before reaching retirement age, you may not be able to get the state pension or receive the total pension amount.
Usually, an individual can make voluntary contributions to NI for the past six years. But currently, HMRC has offered an extension through which you can voluntarily contribute and update your NI history from 6 April 2006 to the present.
THIS OFFER IS ONLY VALID UNTIL 6 APRIL 2023. AFTERWARD, THE TIMEFRAME FOR MAKING A VOLUNTARY CONTRIBUTION WILL RETURN TO THE DEFAULT OF 6 YEARS.
Taxpayers can avail the chance and check their National Insurance record, identify any deficiencies, and top up any shortfall in the NI contribution by reviewing their records, including the contribution through PAYE, self-assessment, and NI credits.
This can be done by acquiring National Insurance Statement and the State Pension Statement HMRC to check how much you may claim or go to your Government Gateway ID to determine any NI gaps.
PLEASE ENSURE YOU TAKE ACTION BEFORE 5 APRIL 2023.
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