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HMRC internal manual

National Insurance Manual

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Class 3 NICs: Additional Class 3 NICs: Time limit for paying

Section 13 Social Security Contributions and Benefits Act 1992

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

Section 13A(3) Social Security Contributions and Benefits Act 1992, as inserted by section 135 Pensions Act 2008

Section 13A(3) Social Security Contributions and Benefits (Northern Ireland) Act 1992, as inserted by section 136 Pensions Act 2008

NIM25103 sets out the conditions of eligibility that a person needs to satisfy to be entitled to pay Class 3 NICs under the above legislation. A person who satisfies those conditions and who wishes to pay such Class 3 NICs for a tax year must do so within six years of the date on which they reach State Pension age (“SPA”).

Example

Mr D reached SPA on 17 August 2008. He is entitled to a basic State Pension (“BSP”) of 95%. He has not paid, nor been credited with, any NICs in either the 1976/77 or 1978/79 tax years. So both years are non-qualifying years and do not count towards his BSP entitlement. But if he were to pay Class 3 NICs for both years, he would be entitled to a 100% BSP.

He cannot pay Class 3 NICs under section 13 for either of those years because the time limits by which Class 3 NICs had to be paid - 5 April 1979 and 5 April 1981 respectively - have long since passed. But as he satisfies the conditions in section 13A, he can, if he wishes pay Class 3 NICs for either or both of those years.

If he chooses to pay, he has until 16 August 2014 in which to pay for either year. This is six years from the date on which he reached SPA on 17 August 2008.

The Pension Service’s website http://www.thepensionservice.gov.uk/state-pension/age-calculator.aspcont… a calculator for working out an individual’s SPA.

For details of the time limits for paying Class 3 NICs under section 13, see NIM25028.