State pensioners are being warned by HMRC to act quickly to secure their payments before the deadline hits
Birmingham: HMRC is sounding the alarm for state pensioners. If you’re one of them, you might want to pay attention. There’s a deadline coming up that could affect your pension payments.
The tax authority is letting folks know that they could miss out on a nice boost to their pensions if they don’t act soon. They’re specifically talking about gaps in National Insurance records that date back to 2006. Time is running out, with less than three months left to fill those gaps.
Since last year, the DWP has processed over 10,000 payments, totaling £12.5 million, through a new digital service aimed at helping people increase their state pensions. The previous government even extended the deadline for voluntary NI contributions to April 5, 2025.
This is especially important for those affected by the new State Pension rules, which cover tax years from April 6, 2006, to April 5, 2018. So, if you think you might be impacted, it’s time to check your records.
According to Alice Haine, a personal finance analyst, you generally need at least 10 qualifying years of NI contributions to get any state pension. To snag the full new State Pension, you’ll need 35 years, but they don’t have to be consecutive.
She also cautioned that filling in those gaps can get pricey. It’s crucial to figure out if you really need to buy back any missing years. This depends on how long you plan to keep working and if you qualify for NI tax credits, which can help cover gaps.
To check your status, just log into your personal tax account or use the HMRC app. You can see any payment gaps and find out if you can fill them in online. There’s even a quick survey to help determine your eligibility.
But be careful! Figuring out whether to top up can be a bit tricky. You don’t want to pay for more years than you actually need since you won’t get that money back.
People who might need to consider topping up include those who took career breaks or are low earners. And don’t forget about the deadline! It’s been extended before, but it’s likely the government will stick to the April cut-off this time. So, if you think you need to act, now’s the time to get started.
