Taxpayers with missing National Insurance Contributions (NICs) have until 5th April to make backdated payments to accrue more state pension, say leading audit, tax and business advisory firm, Blick Rothenberg.
Robert Salter, a Director at the firm, said: “As part of the changes to state pensions, the Government temporarily extended the time limit to make backdated NIC payments, so that people with missing contribution history can make voluntary NICs for all tax years from 6th April 2006 onwards.”
He added: “Before this, UK residents, or those who have been UK residents previously and paying UK NICs, who are not automatically getting their NICs for particular tax years would only be able to make backdated NICs for a period of 6 UK tax years.”
Robert said: “This easement is designed to help ensure that people who have missing NIC histories, perhaps because they were living overseas or looking after children and not claiming child benefit for a period of time, can make the voluntary contributions to top up their state pension.”
He added: “However, the voluntary contributions will not be appropriate for everyone. Many taxpayers automatically obtain an NIC history of 35 years, which is the number of years required to qualify for the full basic state pension, through their regular employment or by having claimed child benefit, or jobseeker’s allowance.”
Robert said: “But people who have been working outside the UK for a number of years and not made UK NICs, those who have been self-employed but are paying themselves via dividends rather than salary or have been earning their livelihood via letting income rather than other means should make voluntary contributions.”
He added: “There isn’t any ‘one size fits all’ answer as to whether individuals should make these additional NICs. However, people with missing NIC histories, which they can check by contacting HMRC, should consider it.”
