NIM25013 - Class 3 NICs: Restrictions on the right to pay: precluded Class 3 NICs: tax year in which the person is age 17 or 18

Regulation 49(1)(f) of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004)

The Pensions Act 2014 made changes to contributory benefits and as a result this provision only applies to those that reach State Pension age before 6 April 2016 or, in the case of Bereavement Benefits where the husband, wife or civil partner died before 6 April 2017.

As explained in NIM25001, a person is not entitled to pay (i.e. is precluded from paying) Class 3 NICs in certain circumstances. One of those is that they cannot pay for the tax year in which they are aged 17 or 18 if:

  • an earlier tax year was a qualifying year derived from the actual payment of Class 1, 2 or 3 contributions or
  • they have satisfied the first contribution condition for entitlement to:
    • basic State Pension (where the individual reaches State Pension age before 6 April 2010); or
    • bereavement allowance where the person’s husband, wife or civil partner died before 6 April 2017; or
    • bereavement payment where the person’s husband, wife or civil partner died before 6 April 2017; or
    • widowed parent’s allowance, where the person’s husband, wife or civil partner died before 6 April 2017

For information on contribution conditions for benefits see NIM25011

For details of the other circumstances in which a person is precluded from paying Class 3 NICs, see NIM25006 - NIM25012 and NIM25014 - NIM25017.