More than 10,000 payments worth £12.5 million have been made through a new digital service to boost people’s state pension, HMRC has revealed.

People have until 5 April 2025 to maximise their state pension by making voluntary National Insurance contributions (NICs) to fill any gaps in their NICs record between 6 April 2006 and 5 April 2018.

The service enables people to check if they have gaps in their NICs record, calculate if making a payment would increase their state pension, and then make a payment if they wish to do so.

HMRC data shows:

• 51% of taxpayers topped up one year of their NICs record
• the average online payment is £1,193
• the largest weekly State Pension increase is £107.44.

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous six tax years, in line with normal time limits.

Emma Reynolds, Minister for Pensions, said:

‘We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.’

Check your pension here.

Internet link: GOV.UK

The end of business rates relief will sting hospitality with a £928 million bill in April unless the government acts in the Budget, warns UKHospitality.

Hospitality and leisure businesses face their bills quadrupling if business rates relief ends as planned on 31 March, it adds.

The trade body is calling for the Chancellor to introduce a new lower, permanent and universal rate for hospitality’s business rates at the Budget on 30 October.

It says the current business rates system unfairly penalises hospitality, with the sector paying three times more than it should do. UKHospitality wants to see a lower, permanent and universal rate, or ‘multiplier’, for hospitality businesses.

Kate Nicholls, Chief Executive of UKHospitality, said:

‘Hospitality businesses are facing a devastating cliff-edge next April, when many will see their bills quadruple.

‘The scale of this almost billion-pound tax bombshell is just not viable. Many will face risk of closure, be forced to let people go to stay afloat, or shelve their investment plans.

‘There has to be a solution that avoids this cliff edge, and a lower, permanent and universal multiplier for hospitality would deliver that.

‘Not only would it give certainty and stability to businesses, but it would allow the government to begin delivering on its own manifesto commitment.

‘At the Budget, the Chancellor can choose to act and take the brakes off the sector’s growth by avoiding this cliff-edge. I hope she does just that because inaction could be fatal.’

Internet links: UKHospitality

The Resolution Foundation has suggested that reforms to inheritance tax (IHT), capital gains tax (CGT) and national insurance (NI) could raise more than £20 billion a year.

The Foundation said that the reforms could also pass a ‘triple tax test’ of improving tax efficiency, making sure that tax rises fall on those with the broadest shoulders.

It said that Chancellor Rachel Reeves has ‘greatly limited’ her revenue raising options by pledging not to raise the main rates of income tax, corporation tax, VAT or NI.

According to the Resolution Foundation, CGT is ‘ripe for reform’ as rates are ‘unjustifiably lower’ compared to those on other forms of income.

Adam Corlett, Principal Economist at the Resolution Foundation, said:

‘There is widespread speculation about what might be in the first Budget of the new Parliament, but overall tax rises are a dead cert and time-honoured tradition.

‘Long overdue reforms to IHT, CGT and pension contribution reliefs would fit the bill and could raise over £20 billion if needed, while also making the tax system fairer and more consistent between different taxpayers.’

Internet link: Resolution Foundation

The government has announced an overhaul of the UK’s apprenticeship system.

A new growth and skills levy which will replace the existing apprenticeship levy and include new foundation apprenticeships.

The government says these new apprenticeships will give young people a route in to careers in critical sectors, enabling them to earn a wage whilst developing vital skills.

The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.

The training eligible for funding under the new levy will develop over time, informed by Skills England’s assessment of priority skills needs, the government adds.

The Department for Education will set out further details on the scope of the offer and how it will be accessed in due course.

Alex Veitch, Director of Policy at the British Chambers of Commerce, said:

‘Skills shortages continue to be a major concern for businesses and a drag on economic growth.

‘The proposed new Growth and Skills Levy was a key part of the government’s plans at the election. It is welcome ministers have acted early to give more details about skills reform.

‘We’ve long argued that the current Apprenticeship Levy needs urgent reform to make it more flexible. Businesses need a simple, coherent and responsive system that properly incentivises employer investment in training.’

Internet link: GOV.UK BCC