While doing tax, get a bargain from the UK government!

WHILE you are doing your taxes would be the perfect time to check whether you can claim a bargain from the UK government.

But first: remember that you have to file your UK Self-Assessment tax return online by 31 January 2025. If you don’t, you will have to pay a substantial automatic fine.

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Offices of the Inland Revenue (precursor to HMRC) in Aldwych

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The bargain is the opportunity to top up your UK state pension. The people at moneysavingexpert.com reckon that you may get back ten times what you pay in. It works like this: The standard basic UK state pension for a single person is £221.20 per week. It is payable from your 66th birthday if you were born on or before 5 April 1960, provided that you have paid at least 35 years of National Insurance (NI) contributions. If you have fewer years of contributions you get less; if you have fewer than 10 years you may get nothing. It has, however, been possible to get away without paying the “Class 2” contributions that determine your eligibility for a State Pension.

You can currently fill in gaps as far back as 2006 and you have until 5 April 2025 to do so. After then, your contribution record for the years 2006 to 2019 will be locked.

From that date, if you have self-employed profits of at least £6725 per year you are “treated as having paid” Class 2 contributions. But you really should top up earlier years.

Note also that if you need to register with the Government Gateway to get access to your online tax and National Insurance records you should do so now because it can take some time.

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* Tax and National Insurance Freelance Fees Guide
* Benefits and pensions Freelance Fees Guide