Paying voluntary class 2 or class 3 NIC may help the person to secure future UK state pension and other benefits entitlement. To do this, the person must meet the basic eligibility criteria and they should consider if any special rules apply. It is also important that they check their NI record so they can make an informed decision about whether or not to pay voluntary NICs.  

The rates of NIC currently applying in most cases are £3.50 per week for class 2 and £17.75 per week for class 3. 

Eligibility criteria 

The person must satisfy at least one of the following conditions:

• They previously lived in the UK for three years in a row.
• They paid contributions or had class 2 NIC treated as having been paid for at least three years.

For class 2 NIC, it must also be the case that person is a worker.

Particular circumstances

Social security can be a complex area, especially for temporary non-residents, and individuals may need to obtain advice from a specialist in the area. Much depends on the person’s circumstances, including the country in which they are now living. Points to consider include:

• Is class 1 NIC due in the UK on a mandatory basis? This may be the case where the person has moved abroad for work purposes, or regularly works between the UK and another country.
• Is the person liable to social security in the country where they are living and working, rather than the UK? This will depend on the country they are working in and whether their circumstances mean they come within the scope of any social security agreement in place. The UK has concluded several social security agreements, which is relevant for various locations including the EU member states, Switzerland, the United States, Canada, and Japan among others. In such cases, workers must continue to pay social security contributions based on earnings and cannot choose to pay voluntary contributions instead.
• Does a social security treaty apply to prevent payment of UK voluntary NIC? Some social security treaties contain a clause that prevents payment of UK voluntary NIC in addition to contributions to the other country’s mandatory or voluntary social security scheme. The countries are: Canada, Barbados, Chile, Isle of Man, Jamaica, Japan, Jersey and Guernsey and Republic of Korea. Any people moving to these locations who fall outside the terms of the social security agreement (typically those who are not working) may be able to pay voluntary UK NIC.

Making an informed decision

Anyone thinking of paying voluntary NIC should first review their NI record. The quickest and easiest way to do this is through HMRC’s app. This will enable the person to see if there are any gaps in their record that they wish to cover.

Some treaties do also provide for aggregation. This means that any contributions made in the other country will be taken into account when determining eligibility for UK state benefits but not usually for the calculation of the amounts due. In addition, claimants should be aware that the annual uplift to the UK state pension does not apply if living in a country where there is no social security agreement with the UK, or where the provisions of the agreement do not protect the increase.

Further information

HMRC has published guidance on paying voluntary NIC. This includes a link to an interactive tool that will help the person, or their agent, apply the rules to their particular circumstances.