National Insurance Archives

Don’t Miss Out! Your Future Pension Needs YOU! – Check Your NI Contributions by April 5th, 2025

March 20, 2025/in 2024-25, 2025, National Insurance, NI, NI Class 3, NIC, NIC's/by Taxfile

By Mohamed at Taxfile.

Have you ever thought about your pension? It might seem far away, but it’s super important to start thinking about it now! One of the key things that helps build your future pension is your National Insurance (NI) contributions.

What are NI Contributions?

Think of NI contributions like little building blocks for your future. When you work and earn money, some of that money goes towards your NI. These contributions help you qualify for things like the State Pension when you’re older.

Why is it Important to Check?

Sometimes, there might be gaps in your NI record. Maybe you didn’t earn enough in a year, were travelling, or something else happened. If you have gaps, it could mean you get less State Pension later on.

The Good News: You Can Fill the Gaps!

You can often fill these gaps by making voluntary NI contributions to fill the gaps between 2006 to 2018 This means you pay a bit extra now to make sure you have a stronger pension later.

Big Deadline Alert! April 5th, 2025

There’s a really important deadline coming up: April the 5th, 2025. This is the last day you can pay voluntary NI contributions to fill certain gaps in your record. After the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

Why the Rush?

Boost your pension because filling gaps means a bigger pension in the future.
Don’t miss out — after the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

What Should You Do?

Check your NI record — it’s free and easy! You can check your NI record online through the government’s website.
See if you have gaps — look for any years where you didn’t contribute enough.
Think about voluntary contributions. If you have gaps, consider paying voluntary contributions.

Need Help? Taxfile Can Help!

If you’re feeling a bit confused or need help understanding your NI record, don’t worry! Taxfile is here to help. We can explain everything clearly and help you make the right decisions for your future.

020 8761 8000 Book Appointment Contact Us

Taxfile are South London accountants and tax advisors based in Tulse Hill.

Lowering the Secondary Threshold for Employer NI – What You Need to Know

March 6, 2025/in 2025, Accountancy, Employment allowance, National Insurance, NI, NIC's/by Taxfile

From April 2025, the secondary threshold for employer National Insurance (‘NI’) will be lowered. This means that employers will need to start paying employer NI contributions on their employees’ earnings sooner.

How Will This Affect Employers?

This change will affect employers in a number of ways. Firstly, employers will need to pay more in employer NI contributions. Secondly, employers will need to update their payroll systems to reflect the new threshold.

Employer NI and Employment Allowance Update

As an employer, you are responsible for deducting and paying National Insurance contributions (‘NICs’) for your employees. There are two types of NICs:

Employer NICs — These are paid by you as the employer.
Employee NICs — These are deducted from your employees’ wages.

Employment Allowance

The Employment Allowance is a relief that allows eligible employers to reduce their National Insurance contributions. The allowance increases from £5,000 to £10,500 per year from April 2025.

Increase in Employer NICs

From April 2025, the rate of Employer NICs increases from 13.8% to 15%. This means that you will need to pay more NICs for your employees.

How Taxfile Accountants Can Help

Taxfile Accountant can help you with all aspects of your payroll, including:

Calculating and deducting NICs
Claiming the Employment Allowance
Preparing and filing your payroll reports

We can also provide you with advice on how to minimise your NICs liability.

Payroll Help from Taxfile

Contact Taxfile today to learn more about how we can help you with your payroll and any accounting matter.

020 8761 8000 Book Appointment Contact Us

Taxfile are accountants and tax advisors in Tulse Hill, and London SE21.

Boost Your State Pension with Voluntary National Insurance Contributions

December 15, 2023/in 2025, National Insurance, NI, NIC, NIC's, pension contributions, Pensions, State Pension/by Taxfile

As we approach retirement, ensuring a comfortable financial future becomes a top priority. The state pension, a crucial source of retirement income, is dependent on the number of qualifying years of National Insurance (NI) contributions you have made. While gaps in your NI record can diminish your state pension entitlement, there’s a solution: voluntary NI contributions.

To receive the full state pension, you need 35 qualifying years of NI contributions. These years typically accumulate as you work, with contributions automatically deducted from your salary. However, there may be instances where you may not have earned enough to make mandatory NI contributions, leading to gaps in your record. Read more

Deadline for Voluntary Insurance Contributions Extended to 5th April 2025

June 15, 2023/in 2023, Class 2 NICs, National Insurance, NI, NIC, NIC's, pension contributions, Pensions, State Pension/by Taxfile

The original deadline for buying National Insurance ‘credit’ was 31st July 2023, but you can now ‘buy’ incomplete years to boost your state pension until 5th April 2025. The extension was approved by the Government, giving HMRC more time to deal with the process.

You can view our original blog on what you need to do to plug the gaps in your National Insurance contributions here.

Boost State Pension by Plugging Gaps in National Insurance

April 21, 2023/in Class 2 NICs, National Insurance, NI, NIC, NIC's, pension contributions, pension scheme, Pensions, State Pension/by Mark

^{IMPORTANT: the video mentions the original deadline in April 2023. This has now been extended to 5th April 2025.}

Do you have gaps in your National Insurance record? If so, it could mean that you could get a lower State Pension when you reach state retirement age, particularly if you are aged between approximately 45 and 70 at the moment. Generally speaking, you need 10 years of contributions for a basic state pension and around 30 to 35 years for a full state pension. It does vary by circumstance though and, even with gaps, some people might have enough qualifying years for the full state pension already.

Urgently Check Whether You Have National Insurance Gaps

Our advice is to urgently check whether you do have any gaps in your National Insurance record. If so, in many cases it would be wise to make some one-off payments to plug any gaps for the years 2006 to 2016. However, there is limited time to do so despite the deadline for this opportunity having been extended from early April to the end of July 2023 [UPDATE: This has now been extended again to 5th April 2025]. Thereafter, the chance to fix all 11 years from 2006 to 2016 will be gone forever. Read more

Key Takeaways from the Spring Statement 2022

March 24, 2022/in 2022, Accountancy, Accountants, Budget, Class 2 NICs, Class 4 NICs, National Insurance, NIC, Spring Statement, Tax, VAT/by Mark

The Chancellor Rishi Sunak unveiled his Spring Statement for 2022 on 23 March and in some ways it was more like a mini budget.

Key takeaways from the Spring Statement include:

The earnings threshold at which you start to pay National Insurance Contributions (NICs) will increase to £12,570 from July 2022. This is currently set at £9,880 (correct at time of writing, March 2022), so will leave people with more money in their pockets.
Class 2 NICs for the self-employed will also reduce, from April 2022, to zero for profits between £6,515 and £9,568
5p per litre has been cut immediately from fuel duty.
The basic rate of income tax will reduce from 20% to 19% starting in April 2024.
The Employment Allowance will increase to £5,000 per annum from April 2022. Currently it’s set at £4,000. The allowance reduces the NICs that employers have to pay.
VAT on materials that save energy will be reduced from 5% to zero from April 2022. This should reduce the cost of things like solar panels, heat pumps and insulation.
Councils in England will be able to pass on their share of an additional £500m in extra Government support via the Household Support Fund. The new tranche is for the period 2022/23. The fund helps vulnerable residents, via councils, with short-term help with things like fuel and household bills, food, clothing and other essentials. The previous tranche ends on 31 March 2022, so this is timely.

Watch the Chancellor’s 28 minute Spring Statement 2022, as delivered to the House of Commons, in the video above (skip any adverts). Alternatively get all the detail in the House’s briefing summary here. There’s also a Read more

Are you self employed? Advice from Taxfile

June 9, 2021/in 2021, 2022, Accountancy, Accountants, Accounts, Advice, Class 2 NICs, Dulwich, expenses, National Insurance, South London, Tax returns, Tulse Hill/by Taxfile

Are you self employed? If so, Joe from Taxfile has some quick advice for you:

Class 2 National Insurance

It is important to register for Class 2 National Insurance. A lot of people don’t have this set up correctly and, if not sorted, then it can greatly affect your pension in the future. Class 2 National Insurance isn’t a lot of money, so speak to one of our advisors to make sure you’re set up. Finding out missing years is also possible.

Tax Returns

Try to file your tax return early. A major benefit to this is knowing what your tax liability will be long before it is due. That way, you can plan ahead or even set up a payment plan.

If you are filing your return late, then it is very important to try to get up to date as soon as you can. Apart from the initial £100 penalty for late returns, you will eventually end up paying a £10 per day penalty too if you don’t get up to date soon enough. That can soon spiral out of control. HMRC is very good at helping people who are struggling, but they can’t help if you bury your head in the sand. Penalties for late tax returns can be appealed but you must have very a good reason, like illness or death in the family.

Are you claiming the right expenses?

Speak to one of our agents about allowable expenses. A lot of people don’t claim the right expenses and can end up overpaying their tax. We can help with that, so you save unnecessary tax.

Contact Taxfile

Speak to Taxfile for any of your tax needs. Our staff skills are so versatile that, between us, there is nothing accounting- or tax-related that we can’t help with.

Call Taxfile on 020 8761 8000 or email your tax-related query and we’ll be happy to help. We also offer a free 20-minute introductory appointment if you’d like to meet us in person or virtually through a video or telephone call — whatever you prefer. We are accountants and tax advisors in Tulse Hill/Dulwich South London.

This post was brought to you by Joe at Taxfile.

May Newsletter – New Battersea Branch, Easy CIS Tax Refunds, Avoid £10 Daily Fines & More

May 11, 2018/in Accountancy, Accountants, Accounts, Battersea branch, Bookkeeping, CIS, Construction Industry Scheme, Contractor, Income tax, Late return, Limited companies, Limited company, London, London SW8, National Insurance, New CIS, NI, Payroll, Rebate, Refund, Self-assessment, Subcontractor, Tax, Tax advice, Tax advisers, Tax bill, tax experts, Tax overpayment, tax rebates, Tax refunds, Tax returns, Taxfile, Tulse Hill, VAT/by Mark

Our informative May e-Newsletter is now ready to view online. It includes exciting news of our new branch opening in Battersea along with important tax and accountancy-related news that might affect you. Here is a quick summary of the newsletter’s contents:

The first article announces the opening of our new Battersea Branch in London SW8. New and existing customers are welcome to pop in and say hello and to get expert help with your tax affairs and accountancy requirements. Learn more about the opening of the Battersea branch, and the core services on offer, here or click the big button below to read the newsletter.
If you work on one of the many Battersea construction sites in or around SW8, we can help you reclaim overpaid tax and much more … see the newsletter for more details – click the big button below.
If you’re a sub-contractor working in the construction industry scheme (‘CIS’), you’re almost certainly due a tax refund (learn why here). Taxfile are experts at getting tax rebates from HMRC, so come and see us and we’ll get you the maximum refund possible. Read the newsletter (click the big button below) to learn how we make your tax refund application fast and hassle-free.
We can help limited company contractors too! We’re tax and accountancy experts so we can help you register as a limited company or register for CIS if you’re not already set up, we’ll help you with the monthly tasks demanded of you by HMRC including accounts preparation, confirmation statements, corporation tax handling, CIS set-off rebate, National Insurance (NI), VAT, bookkeeping, payroll and much more. We’ll save you time and will make operating the Construction Industry Scheme a breeze. Click the pink newsletter button below for more details.
If you introduce a family member, friend or colleague to Taxfile, you will get a discount off your next tax return if they sign up as a new paying customer with us. Click the button for details.
Taxfile recently printed some brightly coloured postcards to promote our new Battersea office and our tax-related services. Simply get in contact if you’d like some of these postcards to hand out to colleagues. If you write your full name on the back and use it to refer a colleague, it might even save you money! Click the button for more details.
Our team are multi-lingual and always happy to help. If English is not your first language, let us know and we’ll try to match you to the most appropriate staff member.
If you, your friends, family or colleagues have not dealt with your old tax returns, HMRC will be adding £10 per day to the penalty from 1st May. That’s on top of the £100 fine that will have applied immediately after missing the original 31 January deadline. Let Taxfile get your tax records, tax returns and overdue tax all in order so you don’t have to pay any more in fines than you have already. Learn more here or contact your nearest branch for a consultation.
All Taxfile clients get free ‘Tax Enquiry Fee Protection Insurance‘ when they file their tax return through Taxfile by the statutory deadline. So – if you’re investigated by HMRC – our fees to sort it out are covered. Click the button for more details.

Read the Newsletter

Feel free to Read more

Taxfile: Your One-Stop Tax & Accountancy Shop

February 3, 2018/in Accountancy, Accountants, Accounts, Advice, Auto Enrolment, Bookkeeping, Buy to let, Cab drivers, Capital gains tax, CGT, CIS, Construction Industry Scheme, CT, Disclosure, Dulwich, Estate Planning, HMRC, Income tax, Landlords, Lettings income, Limited companies, National Insurance, NI, NIC, Non-domiciled residents, Partnership, PAYE, Payroll, Self-assessment, Sole traders, Tax, Tax advice, Tax advisers, Tax enquiry, tax experts, Tax planning, Tax returns, Taxi drivers, Tulse Hill, VAT, Workplace Pensions/by Mark

Taxfile has over 100 years of combined tax and accounting experience. It’s incredible to think that the key personnel have administered over 30,000 tax submissions in the past 20 years! Beginning way back in 1994 (and continuing as Guy Bridger Limited from 1997), we originally started business offering only CIS sub-contractor returns but quickly developed the service to help the self-employed, local businesses and higher rate taxpayers with their tax computations. Along the way we added tax and accounting services for taxi drivers, cab drivers, landlords and more. We also offer Capital Gains tax expertise and tax investigation help and, more recently, professional help with disclosures, written tax advice and tax planning for things like inheritance.

We have exceptional accounting experience in all key tax and accounting areas including:

CIS computations, CIS returns and refunds for sub-contractors and limited companies in the construction industry,
Tax, tax returns and accountancy for the self-employed, small businesses, partnerships etc.,
Tax help for taxi drivers and cab drivers,
Tax help for landlords,
Tax help for limited companies,
Tax help for directors,
Payroll services,
Bookkeeping,
VAT including VAT registrations, VAT returns and VAT accounting,
Corporation tax,
Capital Gains Tax (CGT),
Year end accounts for limited companies, SME’s, partnerships,
Non-domicile taxes/foreign taxes,
PAYE and National Insurance Contributions (NIC),
Company registrations,
Auto Enrolment for Workplace Pensions
and just about any other tax and accounting-related assistance you can think of.

Taxfile helps individuals as well as businesses. Our customers are very varied, turning over anything from £10,000 to over £1 million a year. A few are high wealth individuals who no longer need to work but still need to account for their taxes etc. Some customers have retired, others operate small businesses and some don’t even live in the UK but may have assets here. So, whatever your income, assets or situation, the message is that if you need ANY tax-related help, you’ve found the right place in Taxfile.

Taxfile also has the back-up and expertise of professional bodies on tap (so nothing is too complicated for us) and also has excellent relations with the tax authorities — we’re very well trusted by HMRC. Guy even helps in the local employment zone, which aims to improve business in the Tulse Hill and West Norwood area. So, Taxfile is very much part of the local community, particularly in South London (but expanding to other areas too — keep an eye on this blog for forthcoming information about that in the very near future).

Whatever help you need with tax and accountancy-related matters, call Taxfile on 0208 761 8000 and we’ll be delighted to help you. Alternatively, Read more

Spring Budget 2017: Key Changes Affecting SMEs & the Self-Employed

March 8, 2017/in 2017, Chancellor of the Exchequer, Class 2 NICs, Class 4 NICs, Corporation tax, Dividends, ISAs, Limited companies, National Insurance, NIC, Philip Hammond, Self-employed, Spring Budget 2017, Tax/by Mark

Philip Hammond, Chancellor of the Exchequer, delivered his Spring Budget to the House of Commons today.

If you missed it, you can watch and listen to the entire speech by clicking the video above. For those without 55 minutes to spare, we spotlight the key changes, particularly in relation to tax, National Insurance, the self-employed and small businesses.

For the self-employed, Class 2 National Insurance Contributions (NICs) were already set to be abolished from April 2018. Today, to the surprise of many, the Chancellor announced that Class 4 NIC rates will increase from 9% to 10% from April 2018, increasing again to 11% in April 2019. The Chancellor said that this was to more closely align self-employed NI rates with those paid by employees, particularly in view of the new State Pension to which the self-employed will now have access.
Tax-free dividends for those working through a limited company will also be reduced from the current £5,000 level to just £2,000 in April 2018. Corporation Tax will then be charged above that threshold. Again, the reason cited was to bring the self-employed more in line with employees in terms of tax paid overall.
The National Living Wage, for those over 25, will increase to £7.50 per hour from April.
From April this year, the personal allowance (the amount people can earn before paying income tax) will increase to £11,500 and to £12,500 by 2020. The threshold for higher rate tax will also increase from £43,000 to £45,000 this April.
Up to £2,000 (tax-free) will be available towards the cost of childcare for children under 12 from April this year. So for every 80 pence you pay in childcare costs up to £10,000 maximum, the government will add a further 20 pence.
Those lucky enough to be able to afford it will be able to save up to £20k maximum in their ISAs from this April. There will also be an NS&I bond introduced, which will pay 2.2% interest on a maximum of £3,000 per person.
There will be help for businesses following business rate increases, particularly pubs, which will receive a £1,000 discount if their rateable value is less than £100k (apparently that’s 90% of all English pubs). Also businesses coming out of ‘small business rate relief’ will be helped through the transition with a promise of increases no larger than £50 per month from next year.
There will also be an expansion of the clampdown on tax avoidance where some businesses were converting capital losses into trading losses.

Other announcements made by the Chancellor Read more