Voluntary National Insurance Contributions

Voluntary NI contributions are used to plug potential gaps in your National Insurance record, essentially making sure there are enough years of National Insurance contributions (NICs), or National Insurance credits, to get the full State Pension.

Gaps in the contributions record can occur for numerous reasons. They can happen, for example, if you are self-employed with low profits or are employed with low earnings; are unemployed and didn’t claim benefits; or have been living or working outside the UK.

It is possible to make voluntary contributions to fill in gaps in the record, though time limits and eligibility requirements apply. Usually, you can only pay for gaps in the National Insurance record for the past six years but there are exceptions under current transitional arrangements which apply to specific tax years.

For the tax years from April 2006 to April 2017, the deadline for contributions is 5 April 2025. The provision particularly impacts men born after 5 April 1951, or women born after 5 April 1953, for whom retirement planning will be on the horizon. The new deadline gives them more time to assess if voluntary contributions will be of benefit and allow them to access State Pension entitlements. It could also benefit anyone looking to make good a gap in the contributions record for the past six years.

Voluntary contributions don’t always increase the State Pension, so it is important to check the position before making any contributions. You can find out how to check your NI record, get a State Pension forecast, decide if making a voluntary contribution is worthwhile, and make a payment on gov.uk.

 

For more information Voluntary National Insurance: – GOV.UK (www.gov.uk)