HMRC Contacts Self-Employed Individuals About National Insurance Gaps

HMRC is contacting some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their entitlement to the State Pension. It is estimated that up to 800,000 taxpayers who were self-employed between 2015 and early 2024 could be affected.

 

If you receive a letter from HMRC, it is important to review your circumstances and check whether any action is required. You should:

Review your State Pension forecast.

Check your National Insurance record.

Identify any missing qualifying years.

Determine whether making voluntary NI contributions would increase your State Pension entitlement.

 

These checks can be completed through your Personal Tax Account on GOV.UK.

 

It is important to note that receiving a letter does not necessarily mean that you need to make additional contributions. Many individuals already have sufficient qualifying years to receive the full State Pension, meaning that paying extra NI would provide no additional benefit.

 

However, for those with gaps in their record, HMRC's current exercise may provide an opportunity to make voluntary contributions for missing years dating back to 2015-16. In some cases, this could be a cost-effective way to improve retirement income and maximise future State Pension benefits.

 

If you receive a letter from HMRC and are unsure whether making voluntary contributions would be worthwhile, please contact us. We can help review your National Insurance record and advise whether filling any gaps is likely to enhance your State Pension entitlement.