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HMRC internal manual

National Insurance Manual

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Class 3 NICs: Additional Class 3 NICs: Tax years for which payable

Section 13 Social Security Contributions and Benefits Act 1992

Section 13 Social Security Contributions and Benefits (Northern Ireland) Act 1992

Section 13A(2) Social Security Contributions and Benefits Act 1992, as inserted by section 135 Pensions Act 2008

Section 13A(2) Social Security Contributions and Benefits (Northern Ireland) Act 1992, as inserted by section 136 Pensions Act 2008

Regulation 48(3)(b) of the Social Security (Contributions) Regulations 2001As explained in

NIM25101, an individual who satisfies conditions of eligibility can pay Class 3 NICs for a tax year which is not a qualifying year (“QY“). Such a non-QY must be:

  • a tax year from 6 April 1975. That is, the 1975/76 tax year is the earliest one for which Class 3 NICs can be paid under section 13A.
  • a tax year for which the individual cannot pay Class 3 NICs under section 13 because the time limit for paying such NICs has passed.This means that an individual who otherwise satisfies the conditions of eligibility for paying Class 3 NICs under section 13A cannot pay such NICs under that section for a tax year for which they are still in time to pay Class 3 NICs under section 13. That is, payment can only be allowed under section 13A if it is too late for a payment to be made under section 13.

Example 1

It is March 2009. Mrs A reached State Pension age (“SPA”) on 12 August 2008 at age 60. She has 37 QYs out of the 39 that she needs for a full basic SP (“BSP“). This gives her a 95% BSP.

Both the 2006/07 and 2007/08 tax years are non-QYs. By virtue of regulation 48(3)(b) the time limits for paying Class 3 NICs for these years are 5 April 2013 and 5 April 2014 respectively (see NIM25028).

As neither of those time limits has passed, she is not entitled to pay Class 3 NICs for either of them under section 13A. But she is entitled to pay Class 3 NICs for either year under section 13 (NIM25001).

Example 2

It is April 2009. Mr P reached SPA on 2 March 2009 at age 65. He has 38 QYs out of the 44 that he needs for a full BSP. This gives him an 87% basic SP.

The only non-QYs from 6 April 1975 are the 1975/76, 1980/81, 1981/82, 2003/04, 2004/05 and 2005/06 tax years. If he wishes to do so, Mr P can pay Class 3 NICs for those years as follows:

Tax year Class 3 NICs payable under…
   
1975/76 Section 13A
1980/81
1981/82
2003/04 Section 13
2004/05
2005/06

For:

  • the meaning of “qualifying year”, see NIM25001 and NIM25109
  • details of the conditions of eligibility, see NIM25103.