Expert Martin Lewis issues warning on Pension Credit deadline

Martin Lewis and his panel of experts looked at the nation’s pressing questions this week on the Martin Lewis Podcast. The ‘fiscal goddess’ herself, Rebecca Benneyworth, joined the panel, where a viewer’s odd question about the impending National Insurance cut stole the spotlight.

During the insightful chat about optional top-ups for National Insurance records, Rebecca advised UK residents thinking of stepping up their National Insurance contributions to act quickly before the January 31st deadline. She warned: “Otherwise you miss the limit and you don’t get pension credit for that year. It is very important. Sometimes people (say); interest’, but this is an absolutely crucial date”.

In April, National Insurance rates were cut by two percentage points, with class one contributions falling from 10% to 8%, while class four, the self-employed name, falling to 6%. This global adjustment saw Britons encouraged to keep more of their net pay due to the softer tax rate.

However, amid the positive changes, Martin’s listener raised an interesting point about those who purchase National Insurance Credit. Integral to State Pension and Pension Credit eligibility, the acquisition of National Insurance credits, through at least 35 years of contributions, remains essential.

If there are shortfalls, Britons have the option of procuring voluntary third-class or second-class loans to make up for these gaps. The listener asked: “With the National Insurance rate falling, will it cost less for those of us with missing National Insurance years or future National Insurance years to buy those missing years?” Kari Mellon, founder of Opes Tax, replied. pointing out that, despite the tax cut, the rate for voluntary third class national insurance credits remains unchanged.

Rebecca echoed that sentiment with a confirmation: “No, he didn’t. It’s a flat £15 something’.

Martin pointed out that Britons typically spend around £800 a year on voluntary National Insurance contributions and expressed his frustration as he criticized problems with the systems. Alluding to an outdated form of National Insurance now replaced by fourth class credits, he commented: “The corollary is second class, which a lot of people don’t have to pay anymore, meaning if you’re self-employed it was also £3 sterling. weekly fee.

“If you still want to pay that on a voluntary basis, you can pay that £3 a week, even if the people who were supposed to pay it don’t pay it anymore.” At this point Rebecca grimaced at the uneven nature of the situation describing it as a “perverted system”.