What are the effects of paying reduced rate National Insurance contributions?
If you have elected to pay reduced rate National Insurance contributions you are not entitled to: • Any contributory benefits based on them e.g. State Pension; • National Insurance credits to protect your National Insurance record if, for instance, you are unemployed and sign on at the Job Centre or are incapable of work because of illness or disability. However, widows who pay reduced rate National Insurance contributions are entitled to National Insurance credits. • Home Responsibilities Protection (HRP). • You cannot pay Class 3 contributions for any tax year when you had reduced liability for the whole year.
