Voluntary National Insurance contributions
Bobo Lee • 13 March 2023
What is National Insurance?
National Insurance contributions count towards a person’s state pension and benefits. There are three classes and each one has different benefits. Please see the table below for a breakdown:
| Class 1: employees | Class 2: self-employed | Class 3: voluntary contributions | |
|---|---|---|---|
| Basic State Pension | Yes | Yes | Yes |
| Additional State Pension | Yes | No | No |
| New State Pension | Yes | Yes | Yes |
| New Style Jobseeker's Allowance | Yes | No | No |
| Contribution-based Employment and Support Allowance | Yes | Yes | No |
| Maternity Allowance | Yes | Yes | No |
| Bereavement Support Payment | Yes | Yes | No |
Voluntary National Insurance contributions
People who may benefit from making voluntary National Insurance contributions are those who are:
- Employed but receive low income.
- Unemployed and have not claimed benefits.
- Self-employed and received low profits.
- Living or working outside the UK.
The people listed above would not have enough years of contributions to receive the full state pension or qualify for the same benefits as those making National Insurance contributions. Therefore, if they want to receive the full state pension and benefits, they will have to make voluntary contributions.
Eligibility
Here is a breakdown of the criteria one must meet in order to qualify for voluntary National Insurance contributions:
- Employed but receives income of under £123.00 a week (Class 2).
- Self-employed and receives income of £1,000.00 or less (Class 2 or Class 3).
- Self-employed with income of over £1,000.00 but with profits less than £6,725.00 (Class 2 or Class 3).
- Living or working abroad (Class 2) – Must have previously lived in the UK for 3 consecutive years or paid at least 3 years of contributions.
- Self-employed in the following professions (Class 2 or Class 3):
- Examiner
- Minister of religion
- Investment or land and property business
- Living abroad but not working (Class 3).
- Unemployed but not claiming benefits (Class 3).
- Married woman or widow who stopped paying reduced rates (Class 3).
- Reached state pension age and want to fill in gaps in the National Insurance record.
How much will I have to pay?
For the 2022-23 tax year, the amounts payable are:
- £3.15 a week for Class 2 contributions
- £15.85 a week for Class 3 contributions
The deadline to make voluntary contributions is the 05th of April each year and contributions can go back a maximum of 6 years.
The best way to check if you are eligible to make National Insurance contributions is to check on the HMRC website.
If you have any questions regarding National Insurance, please do not hesitate to contact us.
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