By Cheaper Accountant, Aug 20 2018 05:55AM
We sometimes receive client questions about paying voluntary national insurance contributions and is this an option and what are the benefits of doing so. This blog article will highlight what can be done with regards to making additional national insurance payments (or contributions) and what this means for you and your state pension.
Voluntary National Insurance Contributions
It is an option to make payments for voluntary national insurance contributions to plug any gaps in your contributions record.
A full 35 qualifying years of national insurance contributions are needed to receive the full single-tier state pension. This state pension is paid to individuals who reach the state pension age.
Where an individual does not meet the 35 qualifying years requirement they will receive a reduced state pension. A minimum of 10 qualifying years is needed. Anyone with less than the 10 years will not receive a single-tier state pension.
Where an individual does not have the full 35 years they can choose to pay voluntary contributions to boost their pension entitlement.
Check your National Insurance Record
You should check your national insurance record before making any voluntary contributions. This can be done online here: https://www.gov.uk/check-national-insurance-record
You will then be able to identify any gaps in your contributions and decide if you want to make any voluntary contributions to ensure that the full 35 years is reached.
If you are in any doubt about future strategies for paying NI contributions feel free to contact one of our cheap accountants who can provide you with the accounting advice and guidance you need.