State Pension: paying Class 3 National Insurance contributions
New legislation in the Pensions Act 2008 allows certain people to buy up to an additional six years of voluntary Class 3 National Insurance contributions (NICs). This is over and above those permitted under the usual time limits, in order to enhance their basic State Pension entitlement. The new rules came into effect from 6 April 2009.
More detailed information about the new rules and who to contact about paying can be found in the guides and forms section
Frequently Asked Questions
Who will be able to pay the additional six years Class 3 NICs?
Individuals who satisfy certain conditions will be able to pay Class 3 NICs for up to an additional six years back to 1975.
The new measure applies to individuals who:
- reach State Pension age between 6 April 2008 and 5 April 2015
- already have 20 qualifying years (including any full tax years of Home Responsibilities Protection (HRP))
Individuals who reach State Pension age between 6 April 2008 and 5 April 2010 must have at least one qualifying year from paid or treated as paid National Insurance contributions.
How will the new measure affect women who have chosen to pay Class 1 NICs as an employee at the married women’s reduced rate?
Married women or widows with a reduced rate election cannot pay Class 3 NICs for any year where the election covers the whole year. This applies to both the usual rules and the new measure.
A woman who revoked her election part way through a tax year may be entitled to pay Class 3 NICs for the whole of that year.
When will the new measure come in?
The legislation came into force from 6 April 2009.
Why have you increased the rate of Class 3 NICs from £8.10 per week in 2008-09 to £12.05 in 2009-10?
The intention to increase the cost of Class 3 NICs was announced during the passage of the Pensions Act 2008 through Parliament. The proposed increase to £12.05 a week ensures that the new measure is overall cost neutral.
How long have I got to pay the additional Class 3 NICs?
You have six years from the date on which you reach State Pension age within which to pay. For example if you reach State Pension age on 10 May 2010, you will not be able to pay any additional Class 3 contributions after 9 May 2016.
Delaying payment may mean that any increased State Pension will not be backdated to your State Pension age.
More detailed information can be found in the guides and forms section
I have queries about paying "normal Class 3 NICs"?
If you have any queries about how to pay voluntary contributions under the usual arrangements (i.e. not the additional Class 3 NICs under the new legislation) including the extended time limits for the years 1996/7 to 2001/2 tax years, then this website has more information under Guides and Forms and links to the HMRC website. Class 3 NICs are paid to HMRC.