Could a HMRC Error Affect Your State Pension?
4th August 2026
Many self-employed people assume that filing a Self Assessment tax return is all that is needed to keep their tax and National Insurance affairs in order.
However, HMRC has recently identified an issue that may have left around 800,000 self-employed taxpayers with gaps in their National Insurance record, potentially affecting their State Pension entitlement. The issue affects some individuals who became self-employed between 2015 and early March 2024.
Who could be affected?
The problem appears to affect some taxpayers who completed Self Assessment returns but did not separately register for Class 2 National Insurance with HMRC.
This could include:
- Sole traders and self-employed business owners;
- Freelancers and contractors;
- Individuals with a side business alongside employment; and
- Anyone who assumed that submitting a tax return was sufficient.
Why does it matter?
Your National Insurance record helps determine your entitlement to the State Pension.
Most people need 35 qualifying years to receive the full new State Pension. Generally, at least 10 qualifying years are needed to receive any State Pension at all.
Although some taxpayers may have gaps in their record, the impact will vary. Many people will already have sufficient qualifying years through employment, previous self-employment or National Insurance credits and may not need to pay any additional contributions.
What is HMRC doing?
HMRC has said they have resolved the issue for 2024/25 onwards and is now working through historic cases. Those closest to State Pension age will be contacted first. HMRC plans to enhance its State Pension forecast service to help affected taxpayers identify any gaps.
Where gaps are identified, affected individuals will be able to make voluntary contributions beyond the normal six-year time limit and at the original rates.
What should you do?
HMRC has asked taxpayers not to contact them about this issue at present. However, anyone who was self-employed during the affected period may wish to review their National Insurance record and State Pension forecast.
It is important to note that finding a gap does not automatically mean that action is required. Firstly, establish whether any missing years will actually affect your State Pension entitlement before considering voluntary contributions.
Our view
This issue highlights how administrative oversights can have long-term consequences, even where tax returns have been submitted correctly. If you are self-employed, now may be a good time to review your National Insurance position and ensure your State Pension record is complete. We recommend all clients review their National Insurance record every 5 years.
Get in touch
If you have any concerns regarding your National Insurance record or State Pension entitlement, please do get in touch with your usual Whitings contact or your local Whitings LLP office.
Disclaimer - All information in this post was correct at time of writing.
