NIM33203 - Voluntary National Insurance contributions for periods abroad – Entitlement to pay voluntary Class 3 contributions up to and including 5 April 2026
The Social Security (Contributions) Regulations 2001 (SI 2001 No.1004) – Regulation 147 and 146(2)(b)
Where a person is outside the UK and no longer liable to pay UK NICs, they can, if certain conditions are satisfied, apply to pay voluntary Class 3 NICs in order to maintain their UK National Insurance record for State Pension purposes. Class 3 NICs can be paid by those who are not working while abroad or are working but do not qualify to pay voluntary Class 2 NICs.
Those who are either employed or self-employed abroad may be entitled to pay voluntary Class 2 NICs for periods up to 5 April 2026 – see NIM33205 for further information.
To be entitled to pay voluntary Class 3 NICs abroad under regulation 147(3) SSCR 2001 a person must:
- have been resident in the UK for a continuous period of at least 3 years, at any time before the period for which the contributions are to be paid; or
there have been paid by or on behalf of that person:
- contributions of the appropriate amount each of 3 years ending at any time before the relevant period; or
- contributions of the appropriate amount each of 2 years ending at any time before the relevant period and, in addition, has paid 52 weekly contributions under either or both the Social Security Act (SSA) 1975 or the National Insurance Act (NIA) 1965; or
- contributions of the appropriate amount any one year ending at any time before the relevant period and, in addition, has paid 104 weekly contributions under either or both the SSA 1975 or NIA 1965; or
- 156 weekly contributions under either or both the SSA 1975 or the NIA 1965.
Contributions of an “appropriate amount” means that the contributions are sufficient to ensure that a qualifying earnings factor is achieved for the tax year, that is, the year counts for benefit purposes. Contributions paid under the SSA 1975 or NIA 1965 can be for any period not necessarily complete tax years. See NIM25001 for further information.
“Relevant period” means prior to that for which voluntary contributions are to be paid.
Note: Between November 2017 and April 2019, HMRC’s guidance was incorrect. The guidance stated that a person had to satisfy both the residence and contribution conditions within Regulation 147(3). However, a person only needs to satisfy one of these conditions.
Example
Patrick is 55 years old and has always lived and worked in the UK. Patrick intends to emigrate to Australia to spend time with his daughter. Patrick will not be working while in Australia but wants to maintain his UK National Insurance record for State Pension purposes. As Patrick has been resident in the UK for a continuous period of at least 3 years before moving to Australia, he satisfies the conditions in regulation 147 SSCR 2001 and is entitled to pay voluntary Class 3 NICs while abroad. As Patrick will not be working while in Australia, he will not meet the entitlement conditions to pay voluntary Class 2 NICs.
Example
Arthur moves to the UK from China and lives and works here for 15 months before going on an extended holiday for 24 months to Argentina. He intends coming back to the UK to resume employment here.
Arthur applies to pay voluntary Class 3 NICs for the period in Argentina. Arthur does not satisfy the conditions in regulation 147 because he has not been resident in the UK for a continuous period of at least 3 years, at any time before the period for which he wishes to pay voluntary Class 3 NICs, nor has he paid sufficient contributions to have 3 qualifying years for benefit purposes.
Arthur is not entitled to pay voluntary NICs while in Argentina.
Regulation 146(2)(b) SSCR 2001 provides for an employed earner who has been liable to pay Class 1 NICs for the first 52 weeks of their employment abroad under Regulation 146(1), does not need to satisfy the conditions set out in Regulation 147 SSCR 2001 and is entitled to pay Class 3 NICs in respect of any year they are outside the UK, until they return to the UK – see NIM33208 for further information. Entitlement to pay voluntary Class 2 NICs, for years before 6 April 2026, following a period of Class 1 liability is subject to satisfying the conditions in Regulation 147.
Note: Where a person departs or returns to the UK within a tax year, they may not need to pay voluntary NICs for that year if they achieve a qualifying earnings factor for benefit purposes by virtue of any NICs paid while in the UK.