HMRC have published their guidance on the changing rules for Voluntary National Insurance Contributions (NICs) which will come into effect on 6 April 2026. This follows on from the government announcement on Voluntary NIC reforms as detailed within our Autumn budget guide, where HMRC confirmed their intention to abolish Class 2 NICs for individuals residing outside of the UK, and revisit the criteria for Class 3 contributions.
The new guidance has been published here.
From 6 April 2026, there will be two main changes which are detailed in HMRC’s new guidance:
Class 2 contributions are to be abolished for periods spent abroad
Currently, individuals working abroad can pay Class 2 (£3.50 per week) or Class 3 (£17.75 per week) Voluntary National Insurance to maintain their NIC record and UK state pension entitlement whilst overseas, subject to the eligibility criteria of each.
As of 6 April 2026, Class 2 will no longer be available for individuals residing outside of the UK, to cover periods spent abroad. The only option will be Class 3 contributions, representing a sizable cost increase when compared to the former Class 2 rate.
Narrowed eligibility criteria to qualify for Class 3 contributions
At present, individuals are eligible for Class 3 contributions with as little as 3 years prior residency or 3 years of qualifying National Insurance contributions.
As of 6 April 2026, the eligibility criteria will be narrowed and will require individuals to have lived in the UK for 10 consecutive years or have 10 years of qualifying National Insurance contributions.
Depending on how long an individual has been in the UK, they may find themselves eligible for voluntary contributions now, but no longer eligible as of 6 April 2026.
Individuals currently paying Class 2 contributions will be contacted by HMRC following their final bill for 2025/26. They will be asked to re-apply for voluntary enrollment under Class 3. The existing 3-year eligibility criteria will still apply.
Individuals currently not paying any Voluntary National Insurance contributions, will be able to apply for Class 3 contributions under current eligibility criteria (3 years). The application must be completed and submitted by 5 April 2026.
Individuals currently paying Class 3 contributions will experience no changes to their ongoing enrollment.
Any applications made after 6 April 2026 will be subject to the revised eligibility criteria (10 years).
It is imperative that individuals who wish to maintain their NIC record under the current eligibility criteria for Class 3 (3 years) complete an application to pay voluntary contributions ahead of 6 April 2026.
We recommend that individuals:
For individuals currently subject to Class 2 voluntary contributions, whilst no immediate action is required, they can expect communications from HMRC in July 2026, with an expectation to re-apply under Class 3 and the existing 3-year rules.
Please do not hesitate to contact us below, or via your regular Vialto Partners point of contact should you require any assistance with voluntary enrollment ahead of the 6 April 2026 changes
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Craig Smith
Senior Manager
David Crew
Senior Manager
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