A person typically needs 35 years of National Insurance contributions to get the full new state pension
HMRC has responded to a query about tax refunds for individuals who have overpaid National Insurance contributions towards their state pension. Typically, 35 years of National Insurance contributions are required to receive the full new state pension, but many workers end up paying this tax for longer periods throughout their careers.
In response, HMRC laid down the rules, stating: "The only reason you may be entitled to a tax refund would be if the level of your earnings is below the tax-free personal allowance or if an incorrect tax code has been operated. Similarly, the amount of National Insurance you pay would only reduce if your earnings also reduced."
The earnings figure used for the triple lock was published today , suggesting that state pension payments could rise by four percent next year, with the full new amount increasing by £460 annually. However, one expert has suggested that payments could rise by more than this. The analyst further clarified: "The ONS has been known to provide updated figures that more accurately reflect the actual earnings growth over a given period. This means that by the time the final calculations are made, we could see a different percentage being used for the state pension uprating."
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