Tyas & Company
Chartered Accountants, Registered Auditors, Tax, Business Advisors
Thursday, 03 October 2019 23:01

When NIC credits can be claimed

National Insurance credits can help qualifying applicants to fill gaps in their National Insurance record. This can assist taxpayers to build the amount of qualifying years of National Insurance contributions, which can increase the amount of benefits a person is entitled to, such as the State Pension.

National Insurance credits are available in certain situations when people are not working and, therefore, not paying National Insurance. For example, credits may be available to those looking for work, who are ill, disabled or on sick pay, on maternity or paternity leave, caring for someone or on jury service.

Depending on the circumstances, National Insurance credits may be applied automatically or an application for credits may be required. There are two types of National Insurance credits available, either Class 1 or Class 3. Class 3 credits count towards the State Pension and certain bereavement benefits whilst Class 1 covers these as well as other benefits such as Jobseeker’s Allowance.

There are usually no National Insurance credits available to the self-employed that need to pay Class 2 National Insurance or for older married women who chose to pay a reduced rate of National Insurance (pre-April 1977).

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Stephen Tyas                             Stephen Ayres

 

 

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Limited Liability Partnership by the Institute of
Chartered Accountants in England and Wales

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