Self employed may lose out on state pension
Increasing numbers of self-employed people in the UK may not qualify for a full state pension when they retire, the Association of Chartered Certified Accountants (ACCA) has warned. ACCA has stated that self-employed people who reached state pension age on or after 6th April 2010 will need to have 30 years of National Insurance Contributions (NICs) to be eligible for the full basic state pension.
Proposed changes to the state pension could increase this to 35 years for those reaching state pension age from April 2016. Other groups that may not qualify for the full state pension include self-employed people who do not have to pay Class 2 NICs, because they have been issued a CA6812 Small Earnings Exception certificate or are living abroad.
Chas Roy-Chowdhury, ACCA Head of Taxation, advised anyone falling into these categories to contact HMRC to request a NICs statement.