Class 3 National Insurance contributions (Voluntary National Insurance contributions)

Class 3 National Insurance contributions are voluntary contributions and can be paid when you are:

  • not working, or
  • not liable to pay Class 1 and/or Class 2 contributions as an employed or self-employed person, or
  • have not paid, not treated as having paid or been credited with enough Class 1 or Class 2 contributions in a tax year for it to count, for instance, for basic State Pension purposes
  • exempt from Class 2 contributions (although someone who is self-employed and has been given exemption from liability to pay Class 2 contributions may still pay those contributions voluntarily. Class 2 contributions are currently considerably less than Class 3 contributions and provide entitlement to a wider range of benefit entitlement. It would therefore be to your advantage to pay Class 2 contributions instead of Class 3)
  • living abroad (there are different conditions for people living abroad the Centre for Non-Residents material provides more information.)
    and you want to keep or improve and maintain your entitlement to:

What is the Class 3 rate?

Class 3 is a weekly flat rate of National Insurance contributions, which may change each year. For the latest National Insurance contributions rates please use the link.

When do I need to pay?

You must pay Class 3 contributions on time to ensure they count toward Bereavement Benefits and Basic State Pension Class 3 National Insurance contributions are normally due no later than 42 days following the end of a tax year.

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 unless the payment is for one or more of the following tax years 1996-97 – 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 pension age before 24 October 2004

No higher rate charge will apply for the tax years 1996-97 to 2001-02 if contributions are paid within these time limits.

If you pay in the same tax year or during the one after, the rate will be the current one in force. Any payments made after that could be at a higher rate.

If you pay and change your mind there is no automatic right to a refund. The circumstances in which we can give you back your money are limited, so it is important that you consider carefully before deciding to pay. Please go to our Refund of voluntary Class 3 National Insurance contributions page for more.

When am I not allowed to pay Class 3 contributions?

If you are liable to pay Class 1 or Class 2 National Insurance contributions you can't choose to pay Class 3 National Insurance contributions instead. However, if you have not paid, not treated as having paid, or been credited with enough National Insurance contributions to make a particular tax year count towards Basic State Pension, you might be able to pay Class 3 National Insurance contributions to make up the shortfall.

There are a number of circumstances in which you cannot pay Class 3 contributions:

  • You are a married woman or widow who had reduced liability - often known as the "small stamp" - for the whole of the tax year for which you wish to pay Class 3 contributions
  • You have reached state pension age in the tax year for which you want to pay Class 3 contributions
  • You have already achieved entitlement to a full basic State Pension
  • You cannot qualify for the minimum amount of basic State Pension
  • You are entitled to a National Insurance credit including "autocredits", unless you need to pay contributions to satisfy either:
    • the first contribution condition for the basic State Pension, widowed parent's allowance or bereavement allowance; or
    • you need to pay some Class 3 contributions to qualify for the lump sum bereavement payment.

Deciding whether you need to pay

Before you decide to pay you should request a State Pension forecast. To do this, go to The Pension Services website.

How to pay Class 3 National Insurance contributions

You can pay voluntary National Insurance contributions for a past period by cheque direct to HM Revenue & Customs (HMRC). If you have received a letter from HMRC about a shortfall in your National Insurance record, details of how to pay are shown in the letter. If you want to pay for the current tax year you can pay by direct debit (PDF 184K).

A list of Class 3 Frequently Asked Questions is available should you require them.

Shortfall in National Insurance contributions as a result of a mismatch of information between Department for Work & Pensions (DWP) and HMRC

We have checked our National Insurance records and a small proportion of records were found to have a mismatch between the information on the DWP and HMRC computers.

We had wrongly recorded incapacity credits (for periods where an individual is unable to work) and in some cases credits for an approved training course. This has now been corrected but it does mean that some individuals have a shortfall in their contribution record for certain years. We are issuing letters to these individuals.

If you receive one of these letters and you believe that the information we have sent you is wrong. You must write to us at the address shown on the front of the letter. You need to include your National Insurance number which is quoted on this letter, or you can phone us on Tel 0845 915 9555, Monday to Thursday 8.30 am to 5.00 pm and Friday 8.30 am to 4.30 pm.

Shortfall in your National Insurance Record

You may receive a letter from HMRC inviting you to consider paying voluntary contributions (Class 3). This letter is issued to alert you to the fact that you have a particular tax year that will not count towards basic State Pension and Bereavement Benefit – it will not be a 'qualifying year'. Letters like this are issued to certain people every autumn. This year, letters will be issued from September 2007 until January 2008 covering the 2005-06 tax year.

This year, the arrangements for issuing letters are slightly different, to take into account changes to pensions and pension forecasting which have arisen as a consequence of the Government’s Pension Reforms, which take effect from 6 April 2010.

  • If you reach State Pension age before 6 April 2010, your letter will alert you to any shortfall in the 2005-06 tax year, and will include details of the 'qualifying years' up to and including the 2004-05 tax year. This extra information will help you decide whether or not to pay voluntary contributions.
  • If you reach State Pension age on or after 6 April 2010, (and have no periods of Home Responsibilities Protection (HRP) on your record), your letter will alert you to any shortfall in the 2005-06 tax year, and will include details of the 'qualifying years' up to and including the 2004-05 tax year. You will also be given some information about the changes to state pensions which come into effect from 6 April 2010. This extra information will help you decide whether or not to pay voluntary contributions.
  • If you reach State Pension Age on or after 6 April 2010 and you have Home Responsibilities Protection on your record, you will not receive a shortfall letter this year. This is because the arrangements for Home Responsibilities Protection (HRP) are changing as part of the Government’s Pensions Reform. HRP will be converted into a new weekly credit and most people will benefit from this. We will let you know following this conversion if you had any shortfall in the 2005-06 tax year, and make sure you will still have time to make up the gap if you want to – you will not lose out. There is more information about the Pensions Reform and HRP on The Pension Service website.

If you do receive a letter this year:

If you think you should or may be entitled to National Insurance credits for the period on your letter, you should read the information about National Insurance credits as it may help you to decide. If after reading the information you think you should have received National Insurance credits, call us on Tel 0845 915 5996 lines open Monday to Friday 8.00 am to 8.00 pm and Saturday 8.00 am to 4.00 pm, but if the benefit you received during the period covered by the letter was one of the following:

  • Incapacity Benefit
  • Industrial Injuries - only if this benefit included an Unemployability Supplement
  • Jobseekers Allowance
  • Maternity Allowance
  • Severe Disablement Allowance

you will need to contact your local Jobcentre Plus office.

If you were caring for someone and your letter does not show that you were in receipt of Home Responsibilities Protection, you should read the additional information about Caring for Someone.

It is important that you get in touch with us if you think the information on the letter is not right. Phone us on 0845 915 5996: lines open Monday – Friday 8.00 am – 8.00 pm and Saturday 8.00 am – 4.00 pm.

Alternatively you can complete and return form CA93A enclosed with your shortfall letter.

A list of Frequently Asked Questions is available with further information.