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Class 2 NIC qualifying years for state pension

Class 2 NIC qualifying years for State Pension

I have been unable to find what constitutes a qualifying year for State Pension purposes as regards Class 2 NIC. I am slightly surprised at the opaqueness of the literature.

Situation: Client trades 6th April to 31st October 2016 (cessation). Profits are £3,500 and so Class 2 is voluntary. On the face of it he can only pay Class 2 for the period in which he was self-employed. Am I right? If I am right does paying voluntary contributions for the 30 weeks employed give him any benefit for his future State Pension, i.e. how many weeks do you have to pay to gain a qualifying year? There was no work or employment for the rest of the year and no registration as unemployed.

 

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16th Jan 2018 17:44

A year only qualifies if a full year's contributions have been paid (or credits given), whether that's class 2, class 1 or class 3. One week short means no entitlement. However, you're correct in saying that class 3 contributions can be paid to top up for the missing weeks.

Slightly confused by your post though - you say "....does paying voluntary contributions for the 30 weeks employed ...",, but go on to say "There was no work or employment for the rest of the year and no registration as unemployed." - In the first instance did you mean unemployed?

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to tonycourt
17th Jan 2018 12:08

Thank you for your very clear post. As to your query he was self employed to 31/10/16 but unemployed thereafter and had not registered as self employed so not getting NI credits for that latter period.

The question not obviously answered is 'Am I right?', that is, in assuming that voluntary Class 2 contributions can not be paid for weeks after ceasing to be self-employed. I am assuming you think I am right.

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