NIM25007 - Class 3 NICs: Restrictions on the right to pay: precluded Class 3 NICs: entitlement to credited NICs

Regulation 49(1)(a) and (2) Social Security (Contributions) Regulations 2001

As explained in NIM25001, a person is not entitled to pay (i.e. is precluded from paying) Class 3 NICs for any week(s) where they are entitled to an NI credit. Up until 6 April 2016 this regulation was subject to the qualification in NIM25011. From 6 April 2016 the payment of Class 3 NICs now only provides for entitlement to new State Pension and the qualifications in NIM25011 no longer apply. See NIM41000 onwards for information on the types of NI credits a customer could be entitled to.

Example

Mr Ward is not working and is living on savings. Having got a pension forecast several years ago, he knows that he will not get a full new State Pension. Although that has not really bothered him too much in the past he decides to increase his entitlement to State Pension by paying 52 Class 3 NICs for the 2018-19 tax year.

As it turns out, Mr Ward is entitled to NI credits for the 2018-19 tax year. Once any credits are awarded the Class 3 NICs are not required for the purposes specified in regulation 49(2) (see NIM25010) and he has become precluded from paying them under regulation 49(1)(a).

For details of the other circumstances in which a person is precluded from paying Class 3 NICs, see NIM25006 and NIM25008 to NIM25107.