Class 3 NICs: Restrictions on the right to pay: precluded Class 3 NICs: entitlement to credited NICs
Regulation 49(1)(a) and (2) Social Security (Contributions) Regulations 2001As explained in
NIM25001, a person is not entitled to pay (ie, is precluded from paying) Class 3 NICs in certain circumstances. Subject to the qualification in NIM25011, one of those is that they cannot pay for a tax year if, but for the payment of such NICs, they would be entitled to be credited with NICs.
ExampleMr Y is a 59 year old man. He will be age 60 on 7th April 2000. He is unemployed and living on savings. Having got a pension forecast several years ago, he knows that he will not get a 100% State Pension. Although that has not really bothered him too much in the past, he decides anyway to increase his rate of pension by paying 52 Class 3 NICs for the 2000/01 tax year.
As it turns out, Y is entitled to autocredits for the 2000/01 tax year. As the Class 3 NICs are not required for the purposes specified in regulation 49(2) (see NIM25010), he has become precluded from paying them under regulation 49(1)(a).