National Insurance Flashcards
what conditions need to be met to pay class 3 Nics
. They can only be paid for a year if that individual has insufficient Class 1 or Class 2 NICs for that year
. They generally can’t be paid in the tax year in which the individual reaches state pension age (or any subsequent year)
. They can generally be paid up to six years after the tax years to which they relate, but the charge is the current year one.
. For men born after 5th April 1951 or a woman born after 5th April 1953, there is currently an extension where gaps between the tax years April 2006 and April 2016 can still be made up, even though this is a period greater than six years. But this must be used by 31st July 2023.
. There are several residency conditions, specifically that the individual must:
. be resident in the UK throughout the tax year concerned; or
have arrived during the tax year and been previously liable to pay Class 1 or Class 2 NICs; or
. have arrived during the tax year and been resident for 26 weeks.
. Those going abroad may be able to pay class 3 NICs if they have previously been resident or paid NICs in the UK.
What rate are class 3 contributions paid
At a flat rate of £17.45
when are class 3 contributions collected
quarterly on demand or via a monthly DD
When and what are class 3A contributions
lass 3A contributions, and were available from 12th October 2015 until 5th April 2017, for those reaching state pension age prior to the 6th April 2016 and so entitled to the old basic state pension.
These extra contributions allowed an individual to boost their state pension entitlement by up to £25 per week, with the contribution rate per additional £1 per week of pension, dependent upon a person’s age at the payment date.
The top up was made as a one-off lump sum payment and offered a very competitive way of increasing the level of income available in retirement.
Name the benefits which depend on an individual’s or their partner’s NIC record
Contribution based Job seekers allowance (class 1 only)
Bereavment benefit
Contribution based employment and support allowance
maternity allowance
