Voluntary National Insurance contributions | nidirect

October 20, 2022

0 79 4 minutes read

How The Insurance Adjuster Handles Your Personal Injury Claim | AllLaw

qualify for state pension

You qualify for the state pension based on the number of qualifying years you paid National Insurance Contributions (NICs). you pay nics from age 16 until you reach state pension age.

Maybe you are interested

Your record includes national insurance contributions paid or credited to you in each tax year. A minimum number of contributions or credits are required for a year to count as a “qualifying year” for your overall contribution record.

Reading: When do you pay national insurance

state pension before April 6, 2016
new state pension

If you are a man born before April 6, 1951 or a woman born before April 6, 1953, access the nidirect page on how to apply for the basic state pension for more information:

qualify for the basic state pension

If you are a man born on or after April 6, 1951 or a woman born on or after April 6, 1953, go to nidirect’s page on how to qualify for a new state pension for more information:

understand and qualify for a new state pension

national insurance contributions

If you are employed, you pay class 1 national insurance contributions based on your income level. your employer automatically deducts them.

If you are self-employed, you pay class 2 contributions at a weekly fixed rate and class 4 contributions annually, based on your level of taxable earnings.

For more information about National Insurance or to pay your Class 2 National Insurance bill, visit the following pages on gov.uk:

national insurance – gov.uk
pay your class 2 national insurance bill – gov.uk

earning credits for your state pension

You may not be able to pay national insurance, for example if you are sick or caring for someone. the government can grant him credits so that he can continue accumulating the right to the state pension. Find out who can get National Insurance credits and if you need to take action.

earn credits toward your state pension

gaps in your national insurance history

You may have gaps in your record if you don’t pay for National Insurance or get National Insurance credits. this could be because you were:

employed but low income
unemployed and not claiming benefits
self-employed but did not pay contributions due to small earnings
live or work outside the UK

gaps may mean you won’t have enough years of national insurance contributions to:

get full state pension (sometimes called “qualifying years”)
qualify for some benefits

You may be able to pay voluntary contributions to fill in the gaps if you are eligible.

check your logs for gaps

check your national insurance record to find out:

if you have gaps
if you are eligible to pay voluntary contributions
how much will it cost

You may also be eligible for national insurance credits if you claim benefits because you are unable to work, unemployed, or caring for someone full time.

contact hm revenue and customs (hmrc) if you believe your national insurance registration is incorrect.

decide if you want to pay voluntary contributions

Voluntary contributions do not always increase your state pension. contact the future pension center to find out if you will benefit from voluntary contributions.

why you might want to pay voluntary contributions

You may want to pay voluntary contributions because:

you are close to state retirement age and do not have enough qualifying years to receive the full state pension
you know you won’t be able to get the qualifying years you need to get the full state pension during your working life
You are self-employed, you file a self-assessment and you do not have to contribute class 2 because you have few earnings
you live outside the UK but want to qualify for some benefits

self-employed with specific jobs

Some people do not pay class 2 contributions through the self-assessment, but may want to pay voluntary contributions. these are:

examiners, moderators, proctors, and people who ask exam questions
persons conducting business related to land or property
ministers of religion who receive no salary or stipend
persons making investments for themselves or others, but not as a business and without receiving a fee or commission

eligibility

You must be eligible to pay voluntary national insurance contributions for as long as the contributions cover.

eligibility to pay for voluntary national insurance

fees

rates for the current tax year can be found on the following gov.uk page:

fees for payment of voluntary national insurance

how and when to pay

find out how:

pay class 2 voluntary contributions
pay class 3 voluntary contributions

if you live abroad, you can read the ni38 brochure and complete the cf83 form at the end of the brochure. send it back to hmrc using the address in the form.

Generally, you can pay voluntary contributions for the last 6 years. the deadline is April 5 of each year.

example, you have until April 5, 2022 to make up gaps from fiscal year 2015 to 2016.

You can sometimes pay gaps of more than 6 years, depending on your age.

you are a man born after April 5, 1951 or a woman born after April 5, 1953

You have until April 5, 2023 to pay the voluntary contributions to fill the gaps between April 2006 and April 2016 if you are eligible.

offset a shortfall in national insurance contributions (NICs)

It’s up to you to make up any shortfalls. you should carefully consider whether you need to recharge at all. At the same time, you’ll need to consider the number of qualifying years required to be eligible for certain bereavement benefits.

You should request a state pension statement to see if there are any nic shortfalls and decide if you need to make up any shortfalls in your contribution.

If you’re not sure, the council or other free counseling organizations can help. if you talk to a financial advisor, you may be charged for their advice