Voluntary National Insurance contributions – the basics :Cross Stitch – Money, tax and benefits

Sometimes you don’t have to pay National Insurance contributions. This might be because you’re not working or you don’t earn enough. But you may be able to pay voluntary contributions so that you can still claim certain state benefits, including the basic State Pension.

If your work or personal situation means that you don’t currently have to pay National Insurance contributions, or you are not entitled to receive National Insurance credits, you may still be able to pay voluntary contributions to fill in any gaps in your National Insurance record. Voluntary contributions count towards some state benefits and can also increase the amount of benefit you’ll get.

The National Insurance contributions you can pay voluntarily are normally Class 3 contributions, but if you’re self-employed or living abroad you may be able to pay Class 2 contributions voluntarily instead.

If you’re self-employed you can choose to pay Class 2 voluntary National Insurance contributions even if you don’t have to pay them. It’s normally better to pay Class 2 contributions voluntarily than to pay Class 3 voluntary contributions. It will cost you less and you’ll get a wider range of state benefits.

You might choose to pay Class 2 contributions voluntarily when your earnings are low or because you work outside the UK. But there are some conditions you’ll have to meet for paying Class 2 contributions voluntarily if you’re working outside the UK. To find out more, follow the link under the next section ‘Paying voluntary contributions for periods spent abroad’.

You can find out more about how the type of contributions you pay affects the benefits you can get in our guide on National Insurance and state benefits.

If you’ve got gaps in your National Insurance contributions record, your entitlement to the basic State Pension and certain bereavement benefits could be affected. You may want to consider filling in the gaps by paying voluntary National Insurance contributions.

But it isn’t always right or beneficial for you to pay voluntary contributions. It depends on several things, including how much you’ve contributed already and the date you reach State Pension age.

You can find more information to help you decide if it’s worth paying voluntary contributions by following the link below.