In a joint effort from HMRC and the Department for Work and Pensions (DWP), a useful new web tool has emerged, albeit a bit late. In early 2023, these departments struggled to handle the influx caused by a 5 April deadline set a decade earlier. This deadline allowed individuals to pay backdated National Insurance contributions (NIC) to cover gaps in their records dating back to 2006/07, beyond the usual six-year period. Extensive media coverage, often highlighting the most extreme benefits, triggered a last-minute rush that overwhelmed both departments.
After denying there was a problem, the government finally revealed a band-aid solution in March, pushing the deadline out to 31 July 2023. This solution came unstuck about three months later when, still unable to cope with requests for information, the deadline was extended again to 5 April 2025 – two years after the original cut-off date.
One of the biggest issues causing delays was the difficulty in obtaining details of contribution gaps from the DWP (unavailable online) and then paying HMRC the appropriate amount. Now, at long last, a ‘fully end-to-end digital solution’ has been launched by the DWP and HMRC under the banner Check your State Pension forecast. It is not a complete solution, because it will not work if you are beyond the State pension age (presently 66 years), self-employed or currently living outside the UK with gaps incurred while working abroad. You will also need to have a Personal Tax Account with HMRC to log in (or register for one first with GOV.UK).
If you think you might have missed contributions going back to April 2006, it is well worth taking a few minutes to check your position with the new tool. To fill in one year’s missing contribution (before the 2023/24 tax years) costs £824.20 and could mean an extra £328.64 a year in State pension.
For more information, contact us on 0114 266 4432 or email info@smh.group.
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