Class 3 National Insurance contributions

Introduction

Gaps in your National Insurance contributions (NICs) record can reduce the basic state pension you receive when you retire. They also have implications for other state benefits, so it may be worth making voluntary contributions to make up any gaps.

These contributions are called Class 3 NICs. They are wholly voluntary and payable at a flat weekly rate.

You may have gaps in your NICs payment records if you have been unemployed and not claiming benefit, are self-employed and holding a Small Earnings Exception certificate from Class 2 contributions, or living abroad.

You can make Class 3 NIC payments to make up gaps in your contributions record, provided that you are not in an excluded category. By doing this, you can ensure that you qualify for, or improve your entitlement to, a basic state pension, widowed parent's allowance, bereavement payment and bereavement allowance.

If you are self-employed and hold a Small Earnings Exception certificate, you can also choose to make up gaps by paying Class 2 contributions voluntarily. Class 2 NICs are considerably cheaper than Class 3 contributions, and afford a wider range of benefit cover. You may also be able to pay voluntary Class 2 contributions in some circumstances if you are living abroad.

If you choose to pay Class 3 NICs, this guide explains how and when to pay and where to get the necessary forms.

Subjects covered in this guide

• Introduction
• Why you should pay Class 3 National Insurance contributions
• Key dates for Class 3 National Insurance contributions
• How to pay Class 3 National Insurance contributions

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