Maximising the State Pension entitlement should not be overlooked. The full rate of new State Pension increased to £203.85 per week (£10,600 pa) from 6 April 2023; a 10.1% increase over the 2022/23 rate, as a result of the “triple lock” being restored.
At least 10 qualifying years are required to bank a UK State Pension although to claim the full State Pension, you’ll need 35 qualifying years. Individuals should log into their Government Gateway account to check their contribution record as they may be entitled to credit for missing years (for example, if they were on maternity leave, claiming child benefit or being a carer). You can also check how many more qualifying years you’ll need for a full State Pension, and if necessary, make additional National Insurance (NI) contributions for the missing years.
Normally it is only possible to make voluntary NI contributions for the past 6 tax years, to top up any missing or partial years. However, the Government announced an extended deadline to allow taxpayers to make NI contributions for missing years as far back as April 2006. This opportunity was originally scheduled to end on 5 April 2023; then extended to 31 July 2023 but has recently been extended further to 5 April 2025.
Class 3 voluntary NI contributions made before 5 April 2025 will be at the Class 3 voluntary NI rates for the 2022/23 tax year of £15.85 per week, or £824.20 for each full year.
Have you checked your contribution record?
Are you entitled to the full state pension?
If you need advice or to talk to someone about your pension get in contact with CKLG your Cambridge based Chartered Tax Advisers and Accountants.
