If you’re self-employed, now is the perfect time to check your National Insurance (NI) record.
HMRC is contacting around 800,000 individuals who may have gaps in their NI record between 2015/16 and 2023/24. In many cases, these gaps arose because Class 2 National Insurance wasn’t correctly recorded, despite tax returns being submitted.
The good news? If you’re affected, you may be able to fill those missing years by paying voluntary Class 2 National Insurance contributions.
For many people, this can be exceptional value. A voluntary Class 2 contribution costs relatively little, but each additional qualifying year can increase your entitlement towards the full State Pension. Over retirement, the extra pension received could be worth many thousands of pounds.
That said, paying voluntarily isn’t always the right answer. If you already have (or are expected to build up) the 35 qualifying years needed for the full new State Pension, making additional contributions may provide no extra benefit.
That’s why the first step is to check your State Pension forecast and National Insurance record through your Personal Tax Account before deciding whether to pay.
Even if you haven’t received a letter from HMRC, it’s still worth reviewing your position. Some people may also have missing National Insurance credits that should be added to their record.
If you’re unsure whether paying voluntary Class 2 contributions is worthwhile, we can help you understand your National Insurance history, identify any gaps and explain the options available. A quick review today could make a meaningful difference to your retirement income.
