NIM25006 | Class 3 NICs: Restrictions on the right to pay: precluded Class 3 NICs: tax year is already a qualifying one for benefit purposes

Section 14 Social Security Contributions & Benefits Act 1992

Section 14 Social Security Contributions & Benefits (Northern Ireland) Act 1992

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 a tax year if their earnings factor (“EF”) is equal to or exceeds the qualifying earnings factor (QEF) (see NIM25001) for that tax year.

Example

Miss P Carter’s EF for the 2018 to 2019 tax year is £25,000. This is derived from earnings on which she has paid Class 1 NICs.

The QEF for that year is £6,032 (52 × the year’s Lower Earnings Limit of £116). As her EF exceeds that figure, Miss Carter is precluded from paying Class 3 NICs for the 2018 to 2019 tax year.

For details of the other circumstances in which a person is precluded from paying Class 3 NICs, see NIM25007 - NIM25017.