NIM25001 - 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 1992

The 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 up 5 April 1987, 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 credited

is less than the qualifying earnings factor (QEF), 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 QEF.

Where, for any tax year from 6 April 1987, a person’s earnings factor (EF) derived from:

  • So much of earnings as did not exceed the upper earnings limit and upon which Class 1 NICs have been paid or treated as paid; and/or
  • Class 2 NICs paid; and/or
  • Class 3 NICs paid or credited

is less than the QEF, 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 QEF.

A QEF 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 NIM25022;
  • the time limits for payment, see NIM25025 (contents)
  • entitlement to pay additional Class 3 NICs, see NIM25100 (contents).