Thousands of people were blocked from topping up their state pensions before a crucial deadline due to a significant HMRC blunder. The April 5 deadline was the last opportunity for individuals aged between 40 and 73 to fill gaps in their National Insurance (NI) records to maximize claims dating back to 2006. Around 21,000 people logged onto the HM Revenue and Customs portal on Saturday, April 5, to record qualifying years of receiving NI through employment and benefit claims to meet the 35-year threshold for receiving the full pension allowance.
However, those intending to top up their pension pots at the last minute were surprised when the online service for recording payable gaps between 2006/7 and 2020/21 went offline a day early, leaving them unable to secure NI payments for those years. The HMRC confirmed that the portal had been wrongly closed before the deadline and stated that anyone impacted by the outage would be contacted directly to ensure they don’t miss out. Social media users voiced their complaints over the weekend, with one writing, “Unfortunately, it seems that the Government closed the portal for NI top-ups ahead of [the] deadline! Shame they didn’t stick to their own published deadline of today.”
An HMRC spokesperson said, “We’re sorry that customers could not use our online service on Saturday to top up National Insurance contributions for years before 2021.
We will contact anyone affected directly about the payments they wanted to make to ensure they don’t miss out.”
Eligible UK residents were given until April 5 to check their NI record and fill any gaps dating back to April 6, 2006. Any voluntary NI contributions thereafter were only accepted for the last six tax years, currently up to 2019/20. The digital top-up service was launched in April 2024, and around 120,000 people have filed over 260,000 years’ worth of NI gaps since its inception. Filling NI gaps can boost current and future state pensions by substantial amounts.
People could also arrange to pay voluntary NI contributions through an online callback request form submitted to the Department of Work and Pensions (DWP), due by April 5. The Government stated that the form, which allowed those who completed it by the deadline to make top-up payments after April 5, was a means of managing high levels of demand and ensured that “no one misses out.
Irish individuals who have worked in the UK now have a limited window to secure or enhance their UK state pension by purchasing voluntary national insurance contributions. The UK authorities have stipulated that those requesting a callback from the Department of Work and Pensions (DWP) by the upcoming Saturday deadline will qualify to buy back up to 18 years’ worth of national insurance dating back to April 2006.
HMRC portal mistakenly shut down
However, meeting the deadline only marks the first step. The DWP and HM Revenue and Customs (HMRC) have outlined that individuals will have precisely 31 days from the date of their callback to settle any outstanding bills.
Failure to do so could result in the forfeiture of this opportunity. The cost of returning these contributions can be substantial, with bills potentially reaching £16,333 (approximately €19,400) for those aiming to purchase the maximum 18 years. Individuals needing to buy back a minimum of seven years to meet the eligibility for a basic UK state pension could face a charge of €7,540.
The costs will be lower for individuals who have been employed consistently since returning from the UK, estimated at just under €1,500 for seven years and nearly €3,850 for 18 years. This voluntary buyback program is specifically available to those who either worked and paid national insurance for three consecutive years in the UK or accrued three years of national insurance over a longer period. Many applicants who have placed their callback requests before the deadline still complete the necessary paperwork, including sourcing critical documents like their PRSI records.
John Ring, Operations Director at Galway-based Xtrapension, which aids Irish residents with their applications, commented on the challenging timeline: “The people at HMRC/DWP are saying that people have 31 days to pay from the date of the callback, assuming someone registered for it by April 5th. That’s simple and makes sense for people in the UK, but it doesn’t for people outside the UK. How do they know how much to pay and at which rate unless an application has been done and properly assessed? And that cannot be done properly and quickly by phone.”
HMRC communications have been somewhat unclear. They state that follow-up letters sent after the callback will include payment deadlines. They also suggest that people may contact the tax office to discuss payment extensions, although eligibility details remain unspecified.
