fulwood

Sorry about this folks but discussed following issue with someone on this forum but both can't figure out the why... Anyway i have 5 years towards my NI contribution. I am thinking of doing catch up and paying forward. Question is simply this: My letter shows I have to pay Class III NI contributions which is expensive. Would anyone know why? We need a Wiki for all these NI questions. Sorry to ask but could't find answer in previous discussions.

Pomster

you can only pay 6 years of past (missed contributions) and I have never heard of paying forward.

As I understand it Class 3 are when you are unemployed (and maybe country specific).
Class 2 are when you are employed and are- assumed to be- paying into your employing country's pension pot.

HMRC NI page is v helpful

Editha

If you are living abroad you pay class 2 contributions: HM Revenue & Customs: Voluntary National Insurance contributions if you live abroad

You cannot pay forward.

fulwood

Okay. I'll even call them. When I say pay forward I mean I can make payments for future year until I reach 67. So I can make up back payments for past 6 years and then when 2015, 2016 comes around make my NI payments for those years. If I have to pay Class III I can't afford to do it.

fulwood

Editha, thanks for that link just had a gander and I can pay class II. Now have to find out how much it is. Class III is bloody expensive...

Mallory

I was told I would have to pay Class 3 also. I looked it up online, and it's because I worked in Germany for 2 years before I came to the US.

Editha

Can you provide a link? The NI page I linked to doesn't say anything about that.

Mallory

Well, I looked it up about five years ago, so don't have a link. I'm in the UK at the moment because my brother died, so don't have time to really browse. I know it took me quite a while to find the reason, and they didn't explain in the paperwork. From my memory, it would have been about $5k to pay it up. I decided to leave the money in my IRA!

Note: I worked in Germany before the EU days. Might be different now.

scot47

HM Revenue & Customs: National Insurance

Happy Reading. Class 2 is a good buy. Class 3 is pricier. HMRC are unlikely to ask too many questions if you declare that you are working overseas on a self-employed basis.

You DO have to apply to pay and the application can be refused.

Editha

Huh?

I've already provided the link to the NI page on paying voluntary contribs from overseas. It is Class 2 whether you are employed or self employed.