sets out the conditions of eligibility that a person needs to
satisfy to be entitled to pay Class 3 NICs under the above
legislation. A person who satisfies those conditions and who wishes
to pay such Class 3 NICs for a tax year must do so within six years
of the date on which they reach State Pension age
(“SPA”).
Example
Mr D reached SPA on 17 August 2008. He is entitled to a
basic State Pension (“BSP”) of 95%. He has not paid,
nor been credited with, any NICs in either the 1976/77 or 1978/79
tax years. So both years are non-qualifying years and do not count
towards his BSP entitlement. But if he were to pay Class 3 NICs for
both years, he would be entitled to a 100% BSP.
He cannot pay Class 3 NICs under section 13 for either of
those years because the time limits by which Class 3 NICs had to be
paid - 5 April 1979 and 5 April 1981 respectively - have long since
passed. But as he satisfies the conditions in section 13A, he can,
if he wishes pay Class 3 NICs for either or both of those years.
If he chooses to pay, he has until 16 August 2014 in which
to pay for either year. This is six years from the date on which he
reached SPA on 17 August 2008.
The Pension Service’s website
http://www.thepensionservice.gov.uk/state-pension/age-calculator.asp
contains a
calculator for working out an individual’s SPA.
For details of the time limits for paying Class 3 NICs under
section 13, see
NIM25028.
