FAQ: Class 3 National Insurance contributions

Can I pay voluntary contributions for future years to avoid having deficient years and receiving a 'gap in your National Insurance account' letter?

Possibly, but it will depend on your personal circumstances. You can find further information in the following link.

Class 3 National Insurance contributions (Voluntary National Insurance contributions)

The information here will help you decide whether or not you are entitled to pay. You can also contact us for advice on Tel 0845 915 5996, the lines are open 8.00 am to 8.00 pm, Monday to Friday and 8.00 am to 4.00 pm on Saturday.
If you decide to pay for a tax year rather than wait for a letter, remember that if, subsequently, you needn't have paid, you might not get a refund of the National Insurance contributions paid.

I would like to pay but not right now. How long do I have?

You can make back payments of Class 3 National Insurance contributions for previous years, but you need to pay before the end of the sixth tax year following the one in which they were due. If you pay after six years, any payments made will not count, for benefit purposes unless the payment is for one or more of the following tax years 1996-07 – 2001-02 when you have until:

  • 5 April 2009 to pay if you reached State Pension age on or after 24 October 2004
  • 5 April 2010 to pay if you reached State Pension age between 6 April 1998 and 24 October 2004
    to pay. No higher rate charge will apply for the tax years 1996-97 to 2001-02 if contributions are paid within these time limits.

For the tax years 2002-03 onwards, the normal time limits for the payment of voluntary contributions apply. This means you must pay within six years of the end of the tax year in which voluntary contributions were due. The payment date for the:

  • 2002-03 tax year is 5 April 2009
  • 2003-04 tax year is 5 April 2010
  • 2004-05 tax year is 5 April 2011
  • 2005-06 tax year is 5 April 2012
  • 2006-07 tax year is 5 April 2013

If you want to pay voluntary contributions from 6 April 2002 – 5 April 2006, you should not delay as you may have to pay at a higher rate. The voluntary contribution payment rate can increase after the end of the second tax year following the tax year in which the voluntary contributions were due. If you want to pay after this date please get in touch with us first. This means if the gap is for the 2004-05 tax year the voluntary contribution rate changed from the 6 April 2007.

If you reach State Pension age on or after 6 April 2010 and want to pay voluntary contributions for the 2005-06 tax year, it has been agreed that the higher rate charge will not be applied and contributions will be able to be paid at the original rate. The normal time limit for payment still applies.

If you reach State Pension age on or after 6 April 2010 and have entitlement to Home Responsibilities Protection for any tax year, the higher rate charge will not be applied and contributions will be able to be paid at the original rate.

How much are voluntary contributions?

For the latest information on Class 3 National Insurance contributions rates, please follow the link below.

Rates and Allowances - National Insurance contributions

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How much have I paid towards my pension and how much Class 3 should I pay?

Have you received a State Pension forecast? This gives full details about your pension entitlement and what percentage you should expect to receive when you retire. It also tells you if a payment of Class 3 contributions will boost your pension.

To request a forecast, you can apply online at The Pension Service website or contact them on Tel 0845 3000 168, the lines are open 8.00 am to 8.00 pm, Monday to Friday and 9.00 am – 1.00 pm on Saturday. If you have hearing or speech difficulties and a textphone, Tel 0845 3000 169.

I am currently paying Class 3 National Insurance contributions; can I switch to paying Class 2 National Insurance contributions?

  • You can pay Class 2 National Insurance contributions only if you are actually self-employed. If you are self-employed but have been granted exception from Class 2 National Insurance liability because of small earnings, you do not have to pay, but may still pay Class 2 National Insurance contributions voluntarily if you wish.
  • If you are working abroad and are not liable for Class 1 National Insurance contributions, you may pay voluntary Class 2 National Insurance contributions in respect of any week when you are working abroad, providing that:
    • ordinarily you were employed or self-employed in the UK
    • immediately before you left the UK, you were employed or self-employed. You can get more information from the Centre of Non Residents.

What if I pay and then change my mind. Can I have my money back?

Not necessarily. The circumstances in which we can give you back your money are limited; there is no automatic right to refund. So it is important that you consider carefully before deciding to pay, including getting a State Pension forecast.

The Pensions Act 2007 (in Northern Ireland, the Pensions Act (Northern Ireland) 2008), which became law on 26 July 2007, makes changes to the United Kingdom basic State Pension system. In the main, these changes will only affect you if you reach State Pension age on or after 6 April 2010. Therefore, before you make any decisions to pay voluntary Class 3 contributions you must read the important information carefully.