Self-employed Brits who earn more than £12,570 could be missing out on a number of benefits and state pension entitlements – here’s what you need to know
Self-employed individuals might be overlooking potential benefits and state pension investments. Currently, there are two main types of state pensions – the basic state pension and the new state pension – which one you’re eligible for depends on your birth date.
To qualify for the full basic state pension, you need roughly 30 qualifying years of national insurance contributions, while for the new state pension, you need 10 qualifying years for a partial claim and up to 35 years for the full claim.
For those employed by a company, National Insurance contributions are typically deducted automatically through the PAYE system. However, for self-employed individuals, the process is a bit more complex.
Self-employed people earning over £12,570 annually pay Class 4 contributions, which don’t count towards state benefits or pensions.
Those wishing to invest in their retirement can opt to make voluntary contributions. This can help fill any gaps in your National Insurance record and increase the amount you’ll receive from your state pension upon retirement.
How to verify your National Insurance contribution
One straightforward way to verify your National Insurance record, identify any gaps, and estimate your potential state pension is through the government’s official website.
Firstly, you’ll need a Government Gateway user ID, which can be set up on the same site before you delve into your contributions. Be prepared to provide your National Insurance Number and other personal details during this process.
Once you’ve logged in, you can utilise the ‘Check your National Insurance record’ service. This activates your personal tax account and gives you access to your entire HMRC record.
Alternatively, you can request a printed National Insurance statement from the government. This document will contain all the necessary information to review your National Insurance contributions towards your state pension.
You can make this request either through an online application or by dialling 0300 200 2500 and instructing the automated speech software that you wish to ‘question about National Insurance payments’.
State Pension rates 2025/26
The Department for Work and Pensions (DWP) has released the adjusted State Pension and benefit rates for 2025/26, taking into account a 1.7 per cent increase based on September’s Consumer Price Index inflation rate.
Full New State Pension
- Weekly payment: £230.25 (from £221.20)
- Four-weekly payment: £921 (from £884.80)
- Annual amount: £11,973 (from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (from £169.50)
- Four-weekly payment: £705.80 (from £678)
- Annual amount: £9,175 (from £8,814)
