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Aspects of voluntary NICs.
At Small Business Accountancy Scotland we can advise individuals in the Falkirk area on aspects you need to consider before making voluntary national insurance contributions. Here are some of the issues that you should be aware of.
The government is providing a one-off opportunity to allow existing pensioners and those reaching State Pension age before 6 April 2016 to increase their additional State Pension. This will be achieved by payment of Class 3A voluntary national insurance contributions (NICs), which will improve their retirement income by obtaining inflation-proofed extra additional State Pension.
The opportunity to pay will be available from 12 October 2015 to 5 April 2017 and there are two entitlement conditions:
Further details of the measures have been announced, including:
The additional pension purchased with class 3A NICs:
The measure will apply to the whole of the UK but this is dependent upon the Royal Assent of the Northern Ireland equivalent of the Pensions Act 2014 to allow for the increase in the additional State Pension.
The government has set up a State Pension top up calculator, which can be found here.
Some examples are given in the table below. Please note that the contribution amounts are estimates:
Individuals should consider making Class 3 contributions to cover gaps in their Basic State Pension provision, where possible, before making Class 3A contributions. These may give a better return than the figures above.
If you are looking for professional assistance from a team of accountants and business advisers in the Falkirk area, contact Small Business Accountancy Scotland.