UK State Pension Buyback

March 4, 2025

As you may be aware, the UK government are providing a once off opportunity for people who have previously worked in the UK to buy back up to 18 years’ service to increase their entitlement to the State pension.  This opportunity is only available until 5 April 2025.  After this date the maximum number of years pension which can be bought back is 6 years.

Ordinarily, you must have 10 years national insurance (NI) contributions to qualify for a minimum UK state pension with 35 years contributions to qualify for a full State pension.  If you have 10 years contributions or more, the state pension will be paid on a pro-rata basis.

Provided you have worked for more than 3 years in the UK before returning to Ireland you may pay voluntary national insurance contributions to HMRC to entitle you to a UK state pension.  This is in addition to your Irish State pension.

The rates of voluntary insurance depend on whether you qualify to pay Class 2 NI contributions or Class 3 NI contributions

You can pay Class 2 NI contributions if the following conditions apply:

  • You must have worked in the UK immediately before leaving,
  • You must be currently working in Ireland (or worked when you returned to Ireland)
  • You must have lived in the UK for 3 years in a row or you must have paid 3 years worth of National Insurance contributions.

Class 2 NI contributions are payable at circa £3.45 per week which would be a cost of circa £3,229 if you were to pay the maximum of 18 years contributions.

Class 3 voluntary contributions apply in the following circumstances:

  • You must have lived in the UK for 3 consecutive years
  • You must have paid 3 years worth of National Insurance contributions.

Class 3 NI contributions are payable at circa £17.45 per week which would be a cost of circa £16,333 if you were to pay the maximum of 18 years contributions.

As the deadline is 5 April 2025 it is important that you take immediate action to buy back your UK State pension years as there is a backlog of applications, and the application process takes time.  

If you require any assistance in making the application please let us know.

This summary is intended as a general guide and has been prepared based on existing Revenue guidance and tax legislation. No action should be taken without obtaining professional taxation advice. If you require any advice on the above, please do not hesitate to contact Purcell McQuillan Tax Partners Ltd on 01 668 2700 or email your usual PMQ contact.

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