National Insurance contributions for women with reduced elections

Contents

If you were married or widowed before 6 April 1977, you could choose:

  • to pay a reduced rate of Class 1 contributions when an employee, and
  • not to pay Class 2 contributions when self-employed (although you may still have to pay Class 4 contributions).

But you had to make this choice before 12 May 1977. So you cannot now choose to have reduced liability.

Reduced rate Class 1 contributions do not count towards entitlement to any of the following contributory benefits:

  • Jobseeker’s Allowance
  • Incapacity Benefit
  • Basic State Pension
  • Additional State Pension
  • Bereavement Benefits
  • Widowed Parent’s Allowance
  • Bereavement Allowance
  • Bereavement Payment

You may be entitled to a basic State Pension based on your husband’s or civil partner’s National Insurance contribution record. The basic pension you get will be a percentage of your husband’s or civil partner’s entitlement. You cannot get this pension until you reach State Pension age and your husband or civil partner claims their State Pension. Please see further information on the Pension Service web site.

You may be entitled to Statutory Sick Pay, Statutory Maternity Pay, Statutory Adoption Pay and Maternity Allowance, as these are based on the level of your earnings.

If you have reduced liability as a married woman (but not as a widow) you are not entitled to National Insurance credits when, for instance, you are unemployed and sign on at the Jobcentre, or are incapable of work because of sickness or disability.

Nor will you qualify for Home Responsibilities Protection. And you cannot pay Class 3 contributions for any tax year for the whole of which you have reduced liability.

I am employed

Your employer can only deduct reduced rate Class 1 contributions from your earnings if he holds a valid certificate(s) of election.

If you

  • have lost your certificate, or
  • need an extra one (because you have more than one employer), or
  • the end date on your existing certificate has passed and you are starting work for a new employer

print off and complete either form CF9 (PDF 87K) if you are a married woman or CF9A (PDF 84K) if you are a widow and send it, together with any out-of-date certificate(s), to:

HM Revenue & Customs
National Insurance Contributions Office
Contributor Caseworker
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

I am self employed

If you are a married woman or widow and you have opted to pay a reduced amount of National Insurance contributions you won’t have to pay Class 2 contributions, but you will have to pay Class 4 contributions if your profits are above a certain level.

Reduced rate liability ends

Your right to reduced liability will end:

  • if you divorce
  • if your marriage is annulled
  • if, since 6 April 1978, there are two consecutive tax years during which:
    • you had no earnings, as an employee, on which Class 1 contributions are payable or treated as having been paid, or
    • you have not been self-employed
  • at the end of the tax year in which your widow’s bereavement benefit ends
  • if you choose to cancel it.

You will become liable to pay:

  • Standard rate Class 1 contributions if you are working for an employer or
  • Class 2 contributions if you are self-employed. You must:
    • tell your employer(s) you are no longer entitled to reduced liability from the date of your decree absolute (in Scotland, date of decree) or annulment,
    • get back from any employer(s), your certificate of election,
    • complete the relevant section on your certificate of election
  • send the certificate(s) to


HM Revenue & Customs
National Insurance Contributions Office
Contributor Caseworker
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

You must tell the HM Revenue and Customs within 3 months of becoming liable to pay Class 2 contributions; otherwise you may incur a £100 penalty. If you do not register and are not paying tax, you will be breaking the law and could be liable to further penalties.

What happens if I become widowed?

You do not automatically lose your right to reduced liability when you become widowed. In certain circumstances you can keep your right for a certain period after the date of your widowhood.

Cancelling reduced liability

So long as you have not lost your right to reduced liability you can cancel that right at anytime. But once you have given up the right to reduced liability, you will not be able to change back unless you tell HM Revenue & Customs, in writing, before the date from which you choose to cancel.

If you decide to cancel your right to reduced liability, you must print off and complete either form CF9 (PDF 87K) if you are a married woman or CF9A (PDF 84K) if you are a widow and send it, together with any out-of-date certificate(s), to:

HM Revenue & Customs
National Insurance Contributions Office
Contributor Caseworker
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

Once you have cancelled your reduced liability you will become liable to pay:

  • Standard rate Class 1 contributions if you are working for an employer, or
  • Class 2 contributions if you are self-employed.


A list of Frequently Asked Questions is available should you require them.