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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 3 NICs: General

Sections 1(6)(b), 13 and 14 Social Security Contributions & Benefits Act 1992

Sections 1(6)(b), 13 and 14 Social Security Contributions & Benefits (Northern Ireland) Act 1992The payment of Class 3 NICs is allowed only for the purpose of enabling a person who:

  • is over age 16;
  • satisfies the conditions as to residence or presence in Great Britain or Northern Ireland;
  • complies with the conditions relating to:

 

  • the methods of payment; and
  • the time limits for payment to satisfy the contribution conditions for entitlement to certain benefits. Where, for any tax year, a person’s earnings factor (EF) derived from:

  • Class 1 NICs paid, treated as paid or credited; and/or
  • Class 2 NICs paid; and/or
  • Class 3 NICs paid or creditedis less than the qualifying EF, then, subject to certain restrictions on the right to pay, that person may pay Class 3 NICs for that year in order to acquire a qualifying EF.

A qualifying EF is:

  • for the 1975/76 – 1977/78 tax years, 50 times the relevant LEL;
  • for the 1978/79 and subsequent tax years, 52 times the relevant LEL.For details of:

  • the conditions as to residence or presence in Great Britain or Northern Ireland, see NIM25002
  • the restrictions on the right to pay (precluded Class 3 NICs), see NIM25005 (contents)
  • the benefits for which Class 3 NICs count, see NIM25020
  • the methods of payment, see NIM25021;
  • the time limits for payment, see NIM25025 (contents)
  • entitlement to pay additional Class 3 NICs, see NIM25100 (contents).