Time running out to plug NIC gaps

The clock ticks down with only six months remaining to plug National Insurance (NI) gaps. The government is encouraging people to act now and check their National Insurance record as there is no guarantee of a further extension to the deadline.  

As discussed in our previous article on National Insurance contributions (NICs), the government extended the deadline for NI contributions from the original 31 July 2023 to 5 April 2025 to allow eligible individuals to retrospectively fill gaps in their National Insurance record for the period covering April 2006 to April 2016. This extension was intended to give people more time to fill gaps in their National Insurance record that would otherwise prevent them from accessing the full State Pension.  

Plugging the gaps online

Earlier this year, the government launched a tool enabling people to pay to fill in gaps online. So far, more than 10,000 payments totalling £12.5m have been processed, according to figures from HM Revenue and Customs (HMRC). However, many still have gaps in their National Insurance record and are at risk of losing out on their full State Pension.  

• Key figures from the new online service shows the majority of customers (51%) topped up one year of their NI record
• the average online payment is £1,193
• the largest weekly State Pension increase is £107.44

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous 6 tax years, in line with normal time limits.

About National Insurance Contributions

National Insurance is an umbrella term for universal health care, unemployment benefits and the public pension programme.

National Insurance contributions are a form of tax that employees and employers pay to the government through payroll deductions. NICs are paid automatically through the PAYE (Pay As You Earn) system, which deducts an amount based on a percentage of your income, and this generally continues until you reach retirement age. Employees are able to make additional voluntary payments to increase the pension amount that they will be entitled to receive.  

NICs are collected in order to fund various state benefits, such as the NHS and state pensions.  

There are many reasons why you might have gaps in your NICs. If you were unemployed, in education, took a career break to raise a family or even if you were not earning enough, you may have periods where no NIC payments were made. You need to have been paying NIC for at least 10 qualifying years in order to receive any kind of State Pension, and you need to have been paying for a full 35 years to receive the maximum amount possible.

If you’re thinking about your retirement options and would like to speak to someone to map out your financial future, why not get in touch. We’re offering anyone with £100,000 or more in pensions, savings or investments a free review worth £500.  

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.