UK National Insurance Contributions Deadline For British Nationals
Attention British Nationals:
There is a once in a lifetime chance to increase your annual UK state pension income significantly by making voluntary national insurance contributions above the normal allowed level.
Usually, if you have a gap in your record, such as from working overseas, you are only allowed to backdate contributions for the past 6 years. However the UK government are currently allowing people to catch up missed contributions from the years 2006 -2016 as well as the last 6 years.
You only have until the 31st of July, 2023 to do this before the window is closed to contribute for the period 2006 – 2016. As a British national living overseas and working, you may also benefit from being able to pay less for missed years compared to if you lived in the UK.
To check how much you may be able to increase your state pension by, follow these steps:
- Log in to your UK Government Gateway ID Account. If you have never registered for one, you can do so here or click here for more details: https://www.access.service.gov.uk/registration/email?aoc=Y
- Check your national insurance record for gaps: https://www.gov.uk/check-national-insurance-record
- Check your eligibility. If you are a man born after 5th April 1951, or a woman born after 5th April 1953, you can qualify to contribute for the period 2006-2016 and meet the other eligibility criteria for people living and working overseas. See point 4.
- For people living in Hong Kong, you need to check if you will need to pay class 2 voluntary contributions or class 3 voluntary contributions: Class 2 (living overseas and working): You worked in the UK immediately before leaving, and you’ve previously lived in the UK for at least 3 years in a row or paid at least 3 years of contributions. Class 3 (living overseas but not working): You’ve lived in the UK for at least 3 years in a row or paid at least 3 years of contributions. Class 2 voluntary contributions will cost a one off GBP163.80 per missing year to increase your state pension income by GBP275.08 per year. Class 3 voluntary contributions will cost a one off GBP824.20 per missing year to increase your state pension income by GBP275.08 per year.
- If you have not already registered to pay national insurance from abroad you need to fill out the following CF83 form: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1102905/CF83.pdf
- Once you registration is acknowledged you can pay via online banking, telephone or cheque.
If you require any assistance or have any queries about the topic please get in touch with Sam Harley or anyone from the Pyrmont Wealth team on:
**Example For illustration purposes only. Based on an eligible individual having no national insurance contributions for the last 6 years and no contributions for the period 2006-2016.
Not to be considered personal financial advice. The number of years of voluntary contributions you are eligible to make depends on your individual situation.