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NIC: Check record now as gap filling restricted from April | accountingweb

Time is running out to mind the NIC gap


Gaps in taxpayers’ national insurance contribution records can be plugged as long as voluntary contributions are paid before July.

3rd Mar 2023
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Where a taxpayer has gaps in their national insurance contribution (NIC) record they may be able to make up any deficits since 2006 by paying voluntary contributions before 6 April 2023.

An incomplete NIC record can directly affect the taxpayer’s entitlement to the state retirement pension.

An individual needs 35 qualifying years of NIC in order to receive the maximum state retirement pension, and at least 10 qualifying NIC years to receive any state retirement pension at all.

A deficiency in the NIC record can also mean the taxpayer is denied other contribution-related state benefits such as employment and support allowance, the bereavement support payment, or maternity allowance (for self-employed individuals).

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Replies (6)

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By Hugo Fair
03rd Mar 2023 18:42

I may just be particularly grumpy this evening (blame it on the drugs for my bust arm) but, whilst there was nothing there that was news to me, it had never struck me before just how many ways there are to accidently fall foul of the minimum required contributions - and that's without accounting for several other aspects that have changed frequently over the last 40+ years.

Drum-roll for the rhetorical questions ... How many ways are there to accidently pay more than is necessary - And how often do HMRC proactively 'nudge' their 'customers' about apparent over or under payments?

Thanks (3)
Replying to Hugo Fair:
By Catherine Newman
03rd Mar 2023 20:34

Sorry to hear about your bust arm Hugo. I hope you feel better soon.

Thanks (3)
By jackpot
06th Mar 2023 10:09

HMRC are in chaos over this!

I have two new clients who have been trying to make payment, but HMRC have told them that payment can be made after 5 April 2023 as long as the relevant form is submitted to HMRC before that date.

They are currently giving a time frame of 27 weeks to process the relevant form.

I asked HMRC if they should make a payment now in anticipation of the form being processed, and they confirmed to me (and the client) that such a payment would be rejected.

Thanks (0)
By Ben Alligin
06th Mar 2023 10:37

Ah the Class 2 debacle. Since 2016 I have contacted HMRC nearly every year requesting that they sort out the mess and get my self-employed client back on their system for paying class 2. Up until January 2023 this had proved unsuccessful, however with numerous calls in February we have finally managed to get their systems back dated with a couple of years still not registered.

So now we have received the interest charges for my client not paying (the fact that she was unable to pay is apparently not HMRC fault) her class 2 stretching back to 2016. To get those wiped, we have to appeal to these same idjits and it will take them until mid August to respond to our appeal.

This is getting beyond a joke.

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By Inquisitive
06th Mar 2023 18:33

Now, this is another poor performance of HMRC/NI. The issue of making up NI contributions has been much published recently with the 5 April date looming - Martin Lewis and consumer association.
Two (youngish) clients checked their records. Decided to make voluntary contributions for years when at university. But the online system does not allow them to make any payments unless they have a reference number. So where do they get a reference number? It is not easy to find out where to get the number but you have to make a call to 03002003500. Can you get through? No. Wait over a hour and line goes dead. Now both clients work so waiting online during work is not possible. Suffice it to say one client got through to the number after a 40 min wait on the 7th attempt. The other client has not yet managed. But I'm told the payment has to be made before 5th April. Why can't the online system provide the reference number so that the payment can be made online? Is it a deliberate attempt by the government to stop people from paying? Surely not?

Thanks (2)
Replying to Inquisitive:
By ruth.julian
23rd Mar 2023 23:00

Three of my clients have had the same experience. Between them they have spent over 20 hours on the phone trying to get the unique number, including hanging on for over an hour and being cut off or going through the automated question and answer session and being cut off as lines are busy. One got through and was told that they needed to submit the CCL form for the period of working abroad, despite repeatedly telling the HMRC agent that they had paid voluntary contributions for those years at that time. This was all after they had spent hours waiting to speak to someone at Future Pensions to find out how many, and which, years they needed to pay to get a full state pension. If MTD is part of HMRC's digital future, why can't NICs be automated?

Thanks (0)