Mind the gap The new normal?

for the vast majority, the cost of borrowing is still over 6.5-7%. When interest rates were at the same rate prior to the 2008/09 financial crisis, the margins were significantly lower.

So, borrowers have two options.

1. Take the risk and choose a variable rate loan, hoping that in the longer-term, interest rates will come down and as a result you will be better off not fixing, or fixing in the future at a lower rate.

2. Fix the loans now to secure your risk and know your monthly outgoings.

Which option is best for you depends on your attitude to risk and business cashflow.

TOM STONE

You may have previously read that HM Revenue & Customs (HMRC) extended the deadline for making up gaps in National Insurance (NI) records for the years 2006 to 2017. Initially the deadline was 5 April 2023 but was recently extended to 31 July 2023. However, after an increase in demand for this service, the government have extended the deadline even further to 5 April 2025, to ensure people have the time to make these contributions.

The extension gives you more time to check your NI record for any gaps or incomplete years, check whether these are covered by any automatic credits and, if not, look at whether making voluntary contributions would boost your state pension.

You can check your NI record by accessing your Personal Tax Account with HMRC online or by using the HMRC app. Currently 35 qualifying complete years are required for a full NI record.

Voluntary Class 3 NI contributions may seem expensive at over £800 per full year but each extra year could add almost £6 per week to your state pension and so pay for itself within 3 years of drawing state pension. Alternatively, if you had a selfemployment record for those years, but were under the small earnings exception and were therefore not required to make Class 2 NI contributions, voluntary Class 2 NI contributions could be made, which is a far cheaper alternative.

However, paying voluntary contributions does not always increase your state pension. To help you decide if you should make up any missing years using voluntary contributions, please therefore call and speak with your normal contact or one of our Financial Advisers at Albert Goodman Financial Planners.

DAVID PINCHIN Farms & Estates Team david.pinchin@albertgoodman.co.uk