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HMRC internal manual

National Insurance Manual

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Class 3 NICs: Additional Class 3 NICs: Rate payable

Section 13(1) Social Security Contributions and Benefits Act 1992

Section 13(1) Social Security Contributions and Benefits (Northern Ireland) Act 1992

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

Section 13A Social Security Contributions and Benefits (Northern Ireland) Act 1992, as inserted by section 136 Pensions Act 2008The normal rules for determining the rate at which a Class 3 NIC is payable apply equally to additional Class 3 NICs payable under the above legislation.

NIM25029 explains the higher rate provisions.

The rate of a Class 3 NIC from 6 April 2009 is £12.05 a week.

Example

Mrs S reached State Pension age on 23 December 2008. In a working life of 44 years, she has 25 qualifying years (“QYs“). This gives her entitlement to a 65% basic State Pension (“BSP”).

From 6 April 1975, the 1975/76, 1976/77, 1977/78, 1978/79, 1979/80 and 1980/81 tax years are the only non-QYs. She has not paid, or been credited with, any NICs in any of those years. As she satisfies the three conditions - see NIM25103 - for entitlement to pay additional Class 3 NICs, Mrs S can, if she wishes, pay such NICs for each of those six tax years. If she paid for all six years, she would then have 31 QYs. This would increase the rate of BSP to 80%.

Mrs S cannot pay any additional Class 3 NICs before 6 April 2009 - the date from which section 13A came into force. As such, if she pays the amount of additional Class 3 NICs for any of the above years before 6 April 2010, the number and amount of Class 3 NICs payable to make each year a QY is £626.60 ie, 52 weeks at £12.05 a week.

If Mrs S pays for any of the above years on or after 6 April 2010, then the amount she will have to pay for each year will depend on when she pays, as set out in the following table:

Period in which Class 3 NICs paid (dates inclusive) Weekly rate payable
   
6 April 2010 - 5 April 2011 Payable at rate in force from 6 April 2010
6 April 2011 - 5 April 2012 Payable at rate in force from 6 April 2011
6 April 2012 - 5 April 2013 Payable at rate in force from 6 April 2012
6 April 2013 - 5 April 2014 Payable at rate in force from 6 April 2013
6 April 2014 - 22 December 2014 Payable at rate in force from 6 April 2014
23 December 2014 onwards Not payable as out of time - see NIM25108

For details of the number of Class 3 NICs payable in a tax year, see NIM25109.