Until 1977 married women and widows could 'elect' (choose) to pay a reduced rate of Class 1 National Insurance contributions when an employee, and not to pay Class 2 National Insurance contributions when self-employed.
On this page:
If you're an employee and you, or your employer, hold a valid 'certificate of election' - form CA4139, form CF383 or form CF380A - you can pay reduced rate Class 1 National Insurance contributions.
The amount you pay depends on how much you earn. The reduced rate for the 2013-14 tax year is:
Marie earns £350 a week. She pays reduced rate Class 1 National Insurance contributions of 5.85% on £201 (£350 - £149), which is £11.76 a week.
Sarah earns £1,000 a week. She pays reduced rate Class 1 National Insurance contributions of 5.85% on £648 (£797 - £149) of her earnings, which is £37.91. She also pays an extra 2% on the difference between £797 and £1,000 (£203), which is £4.06 The total amount she pays each week is £41.97 (£37.91 + £4.06).
Check the National Insurance contribution rates
Read about tax and National Insurance for the employed
If you’re self-employed and you hold a valid 'certificate of election' - form CA4139, form CF383 or form CF380A - you don't need to pay any Class 2 National Insurance contributions. But you may have to pay Class 4 contributions if your annual taxable profits are over a certain amount. You pay 9 per cent on profits between £7,755 and £41,450 and a further 2 per cent on profits over that amount.
Check the National Insurance contribution rates
Read about tax and National Insurance for the self-employed
Reduced rate Class 1 National Insurance contributions don't count towards 'contributory benefits' like the basic State Pension and bereavement benefits. So if you've chosen to pay these (when an employee) or not to pay Class 2 contributions (when self-employed) you won't normally be able to claim benefits based on your own contributions record. However, you may still be able to get some benefits based on your husband's (or your late husband's) contributions.
For more information on how reduced National Insurance contributions affect your entitlement to state benefits, follow the link below.
Giving up your right to pay reduced National Insurance
If, for whatever reason, you don't have a certificate of election but you think you are entitled to one, fill in:
You can download these forms from the HM Revenue & Customs (HMRC) website. Or you can call the National Insurance Enquiries for Individuals Helpline on Tel 0845 302 1479. The helpline is open from 8.00 am to 5.00 pm, Monday to Friday except bank holidays.
Send your form to HMRC at:
National Insurance Contributions & Employer Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
You'll lose your right to pay reduced Class 1 National Insurance contributions (when an employee) or not to pay Class 2 contributions (when self-employed) if you:
You'll also lose the right if, for two consecutive tax years, you haven't:
If you're an employee and you lose your right you'll need to:
If you don't tell your employer:
If you're self-employed and you lose your right you'll need to:
You must contact HMRC as soon as you're due to pay Class 2 contributions. Otherwise you may have to pay a penalty.
Find out about tax and National Insurance for the self-employed
If you're widowed you don't automatically lose your right to pay reduced contributions. You may be able to keep your right for a certain period after the date when your husband died. For more information, call the National Insurance Enquiries for Individuals Helpline on Tel 0845 302 1479. The helpline is open from 8.00 am to 5.00 pm, Monday to Friday except bank holidays.
Giving up your right to pay reduced National Insurance
Tax and National Insurance for the employed
Tax and National Insurance for the self-employed
