Class 3 National Insurance contributions are voluntary contributions paid if you wish to protect your entitlement to the State Pension and you do not pay enough National Insurance contributions in another class. These contributions do not give you any additional entitlement to benefits.

If you are employed, and your earnings are below the Lower Earnings Limit (LEL), you can choose to pay voluntary Class 3 NI contributions. This will give you a ‘gap’ in your National Insurance record, which you can make up later when your earnings are higher. If you are employed, and your earnings are above the LEL, you will pay Class 1 NI contributions.

If you are self-employed or a freelancer or working in the gig economy, you will pay Class 2 National Insurance contributions. If you need to make a Class 3 National Insurance contribution to maintain your entitlement to the State Pension, you can pay your Class 3 National Insurance contributions through the Self Assessment tax return. Class 3 NI contributions are paid at a flat weekly rate. The current rate is £14.65 per week. You can choose to pay for the whole year or for a set number of weeks

Tax Accountant is a nationwide network of experienced accountants that you trust and can give the technical assistance you require while navigating the financial aspects of self-employment. Our tax advisors would be pleased to discuss your requirements.