Tag: online service

10,000 boost State Pension with online payments

  • Individuals have less than 6 months to fill any gaps in their National Insurance records from 2006 onwards to maximise their State Pension
  • Thousands have topped up their National Insurance record using the government’s online service
  • Government encourages people to act now and check their National Insurance record

More than 10,000 payments worth £12.5 million have been made through the new digital service to boost people’s State Pension since it launched in April 2024, HM Revenue and Customs (HMRC) has revealed.

People have until 5 April 2025 to maximise their State Pension by making voluntary National Insurance contributions to fill any gaps in their NI record between 6 April 2006 and 5 April 2018.

HMRC and Department for Work and Pensions (DWP) are encouraging people to act now and use the Check your State Pension forecast tool on GOV.UK to see if they can increase their retirement income.

The service enables people to check if they have gaps in their National Insurance (NI) record, calculate if making a payment would increase their State Pension, and then make a payment if they wish to do so.

Further analysis of the use of the online service shows:

  • the majority of customers (51%) topped up one year of their NI record
  • the average online payment is £1,193
  • the largest weekly State Pension increase is £107.44

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous 6 tax years, in line with normal time limits.

Since its launch in April, 3.7 million people have used the online checking tool on GOV.UK to view their State Pension forecast.

Emma Reynolds, Minister for Pensions, said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.

“That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”

Customers can use the Check your State Pension forecast tool by logging into their online account or via the free and secure HMRC app. Those without an online HMRC account can register on GOV.UK.

HMRC app users can see their pension details at their fingertips including their current potential retirement date as well as annual, monthly and weekly forecasts as well as checking their NI record.

Everyone should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone. HMRC scams advice is available on GOV.UK.

More information on voluntary NI contributions

No frosty surprises when you claim tax relief directly with HMRC

Every penny counts at Christmas and employees eligible to claim a tax refund on any work-related expenses are being urged to do it directly through HM Revenue and Customs (HMRC) to guarantee receiving 100% of their claim.

Whether working in hospitality or retail, taking on a seasonal second job as a delivery driver, or even becoming Santa’s elf for the month, the most straightforward way to claim – and keep – all of a tax refund is through HMRC’s online service. A claim takes just 15 minutes.

Employees can use the online service to check eligibility and get a full list of work expenses they could claim a tax refund for, including: 

  • cleaning, replacing or repairing a uniform or work clothing
  • using their own vehicle for work including business mileage
  • professional subscriptions they’ve paid for, that are needed to do their job.

Suzanne Newton, HMRC’s Interim Director General for Transformation, said: “Christmas can be an expensive time of the year and for many, it could be a good opportunity to claim a tax refund on work expenses to boost finances.

“Latest figures show the average claim is £125 a year. But the only way to guarantee receiving 100% of your eligible refund is by claiming direct through HMRC. Just search ‘tax relief for expenses’ on GOV.UK to find out more.”

Once customers have signed into the HMRC service, they just need to follow the simple step-by-step guidance to submit their claim. Those who need to set up an account can do so quickly and easily via GOV.UK.

Customers considering using an agent to make their repayment claims are likely to be charged a fee – in some cases up to 50% of the value of the claim. If the claim is then found to be ineligible, customers are liable to pay back the full amount of the refund, not the amount they finally received, so could end up out of pocket.

While going through an agent may seem like a simpler option at first, customers will need to supply the agent with the same information they would use to make the claim themselves using HMRC’s free online service.

Anyone who does, nevertheless, choose to use an agent to make a claim on their behalf should also check the small print before signing a contract – including researching the company so they understand what commission is being charged and how much of their tax refund they are likely to receive back. 

More information about how to make a work-related expense claim and what type of expense can be claimed is available at GOV.UK. 

HMRC: Self Assessment customers use monthly payment plans to pay £46 million in tax

More than 20,000 Self Assessment customers have used HM Revenue and Customs (HMRC) online monthly payment plan service since April to spread the cost of their tax bill, totalling £46 million so far, it has been revealed.

Where customers are struggling to pay their bill in full, the self-serve Time to Pay service allows Self Assessment customers to manage how they pay their tax liabilities. Customers can use the online service for tax bills worth up to £30,000 without the need to talk to HMRC. The service will create a bespoke monthly payment plan for the customer based on how much tax is owed and the length of time needed to pay.

Last year, 123,000 customers used self-serve Time to Pay to spread the cost of their 2019/20 tax bill, worth £460 million.

Customers have until 31 January 2022 to complete their 2020/21 tax return and pay their bill.

If they can’t pay in full, customers can set up their own Time to Pay arrangement online if they:

  • have filed their 2020/21 tax return
  • owe less than £30,000
  • are within 60 days of the payment deadline
  • plan to pay their debt off within the next 12 months or less

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We understand some customers might be worrying about paying their Self Assessment bill this year, and we want to support them.

“To see if you’re eligible to set up a payment plan, go to GOV.UK and search ‘pay my Self Assessment’.”

Self-serve Time to Pay is just one way customers can pay their Self Assessment tax bill, a full list of alternative payment methods is available on GOV.UK.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge.

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.