Social Insurance – paying voluntary contributions
Cross-border workers and gaps in National Insurance Records
UK/NI Background
Paying voluntary NICs enables customers to fill any gaps in their National Insurance (NI) record to boost their State Pension entitlement from the UK/NI.
Individuals can usually only fill gaps in their NI record from the past 6 years. However, as part of transitional arrangements introduced alongside the new State Pension from April 2013 individuals were given until 5 April 2023 to pay voluntary NICs to make up any gaps in their NI record between 6 April 2006 and 5 April 2016.
The 5 April 2023 deadline has now been extended to April 2025 – see Gov.uk
You can request a paper NI Contributions Statement to establish how many contributions/credits you have to date. You can also obtain a UK State Pension Forecast by contacting the Future Pension Centre.
If you’re living abroad, working abroad, or living and working abroad, you may be able to pay voluntary Class 2 or voluntary Class 3 National Insurance contributions if you have either:
- previously lived in the UK for 3 years in a row
- paid at least 3 years of National Insurance contributions
To pay voluntary Class 2 National Insurance contributions you must be working or have worked abroad during the period you are applying to pay and have worked in the UK immediately before leaving.
2024/25 rates
Class 2: £3.45 per week
Class 3: £17.45 per week
Cross-border Worker Example:
The client lives in Northern Ireland and has been working as a full- time employee in ROI since 2006. Immediately prior to this, he had worked and paid NI contributions for 10 years.
Potentially, he can pay voluntary class 2 contributions for the period April 2006 –2016 as per the transitional arrangements in addition to the last 6 tax years totaling 16 years.
The client’s total qualifying years for his UK State Pension could increase from 10 years to 26 years.
The current basic full State Pension amount is £221.20
1/35 = £6.32
26/35 = £164.32
You can apply to pay these voluntary contributions on a CF83 form
Due to an influx of applications because of the extension to transitional arrangements, it is advisable to apply as soon as possible.
Consider the cost of paying voluntary contributions and compare this to the additional amount of benefit that might be awarded.
It should be noted that other factors should be carefully considered such as tax due on increased pension income and the availability of means-tested Pension Credit for low-income retirees.
Ireland Background
The ability to pay voluntary contributions also exists in the South of Ireland for those who are no longer employed/self-employed and are no longer making compulsory PRSI contributions and meet certain other eligibility criteria. In limited circumstances gaps for the same periods can exist in both jurisdictions and an individual may be able to choose which jurisdiction to pay into in order to maximise their pension income. As this is a complex area they should seek specialist advice.
Point to note: There are no provisions in the South of Ireland which enable a cross-border worker to pay voluntary PRSI contributions for periods worked in the North.
Further information:
Page last checked: 19 June 2024
