New online service for voluntary contributions goes live
If you have gaps in your NI history, you can pay voluntary contributions to increase your entitlement to certain benefits, e.g. the state pension. You can now do this online. How do you access the new service?
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Self-employed taxpayers warned over missing Class 2 NI credits
HMRC is warning some self-employed taxpayers to check their National Insurance (NI) records after an issue affecting Class 2 NI credits came to light. The problem could leave some individuals with gaps in their contribution record, potentially affecting their entitlement to the State Pension and other contributory benefits. What should you do?
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When is pensions advice exempt from tax?
You’re close to retirement age and want some professional advice on topping up your pension and a rough idea of how much you’ll have to live on in retirement. If your company foots the bill, will it qualify for the tax exemption?
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HMRC takes aim at side hustles
People with side hustles are the target of a HMRC press release reminding them of their potential tax obligations. Why has this been published now, and what are the key points to remember?
If you have an incomplete contribution record for a particular tax year, you will receive a statement advising you of the position, usually about 20 months after the end of the year in question. The statement will also show the amount of voluntary contributions required to complete the contributions record for that year. This could be worthwhile if it is unlikely that future contributions from earnings will give you a full state pension, e.g. if you’re close to retirement age. If you're unsure whether an incomplete record exists for a previous year, you can check your contributions record via your personal tax account. HMRC has extended the deadline for making up any contributions shortfall as voluntary contributions can now be paid (at 2022/23 rates) by 5 April 2025 in respect of any years from 2006/07 to 2017/18.
The new service allows you to check whether paying Class 3 contributions is likely to increase your state pension entitlement, make a payment with an immediate confirmation, and is digital from end to end, i.e. you no longer need to contact HMRC for a reference number.
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