HMRC is writing to some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their State Pension.
If you receive a letter, don’t ignore it.
The issue affects some people who were self-employed between 2015 and early 2024. HMRC believes up to 800,000 taxpayers could be affected.
What should you do?
If HMRC contacts you, check:
- Your State Pension forecast.
- Your National Insurance record.
- Whether there are any missing years.
- Whether filling those gaps would increase your State Pension.
You can do this through your Personal Tax Account on GOV.UK.
Don’t assume you need to pay
Receiving a letter does not necessarily mean you have a problem.
Many people already have enough qualifying years to receive the full State Pension, in which case paying extra NI would provide no additional benefit.
Why this matters
Normally, there is a six year time limit on paying voluntary NI contributions. However, HMRC’s current exercise may allow affected individuals to fill gaps potentially dating back to 2015-16.
For those who are affected, this could be a relatively low-cost way to increase their retirement income.
If you receive a letter from HMRC and are unsure whether it is worth paying voluntary contributions, please contact us. We can help you review your position and determine whether filling any gaps would improve your State Pension entitlement.
