Have you ever worked in the UK?

Under a temporary scheme, Irish people who worked in Britain for at least three consecutive years and paid national insurance (the equivalent of our PRSI) can “purchase” missed years, by making voluntary national insurance payments. Therefore, it’s possible for an Irish national, who previously worked in the UK, to claim a UK state pension from Ireland in addition to their Irish state pension.

How do I currently qualify for a UK state pension?

• You must have a minimum of 10 qualifying years on your national insurance record to receive the minimum state pension.
• To obtain the full pension, you will need 35 years on your record.
• HM Revenue & Customs (HMRC) will work out the qualifying years you have on your record, so you don’t have to.

If you haven’t worked the required amount of time to reach the minimum 10 years, this is where the concession comes in and you can make voluntary contributions to purchase qualifying years.

How many qualifying years can be purchased?

Until 5 April 2025, the UK government is allowing for the “purchase” of qualifying years to account for gaps that may have arisen in your National Insurance record between April 2006 and April 2024.

This allows for an Irish national with less than 10 qualifying years on their record to now qualify for at least the minimum UK pension if they bring their record up to 10. The more years you have, the greater the pension entitlement will be.

The cost to you will depend on whether you must pay Class 2 (non-resident) or Class 3 (resident) contributions, with HMRC determining which category you are in.

From 6 April 2025 this special concession will no longer apply, and the purchase of qualifying years will revert to a maximum of six years, so you need to act fast.

What do I need to do next?

The application process takes time, and it is important that you obtain the appropriate UK advice and get started well in advance of the 5 April deadline. Below is a summary of your next steps:

1. Review your National Insurance Record and current State Pension forecast with HMRC.

   You will need a Government Gateway ID – see here for more information.

   This will help to determine if you are eligible to purchase qualifying years or if you are already forecast to receive a state pension.

2. Apply for a state pension forecast here.
3. Complete form CF83 and return this to HMRC directly.
4. Make your payment via the online portal.

Voluntary national insurance contributions are 100% worthwhile if they’re available to you. However, you need to take immediate action in order to fully avail of what could be up to 18 additional years on your National Insurance record. That option expires on 5 April 2025.

Once you have filled in the gaps in your National Insurance record, the journey doesn’t stop there. You can continue to add one year to your record at the end of each and every tax year, slowly working towards a full UK state pension entitlement.

For more information and advice on how you can avail of this and other measures, please contact a member of our experienced tax team.