temple

Hi,

I've just received confirmation from HMRC that I'm able to pay at the Class 2 rate, and I now want to make my "top-up" payment (8 years worth of contributions). I have 2 questions.

1.) Maybe it's just me being dumb, but the instructions to pay via some method of international transfer are a little confusing (I no longer have a UK bank account). How do other folks manage this? Wire transfer? ACH/EFT? Some sort of international check?

2.) Also I'm curious what happens on an ongoing basis. Do you receive a communication from HMRC on an annual basis stating what the amount for that particular year is?

Thx in advance,

Dave.

malch

1. Ick. I think this is going to be a significant hassle without a UK bank account. I kept my old account alive and pay HMRC with a direct debit.

If I didn't have that account, I'd probably ask a relative to make the payments for me and reimburse them when practical.

2. Yes, HMRC send an annual letter with the payment schedule for the upcoming year. Looks like this is sent out somewhere around Mid-February.

Pulaski

I am about to start the same thing, but I still have my British bank account. ..... But I thought you could only pay six years in arrears?

temple

I'd originally thought that too, but it turns out to be 8 (for me at least). I quote "the amount(s) that you can pay for the 2006-7 to 2013-14 tax year(s) are at the cheaper Class 2 rate because you have told us that you are (or have been) employed or self-employed abroad...."

MidAtlantic

You can make payment via one of the often mentioned money transfer services like xe.com. Not as easy as direct debit from a UK bank account but much less expensive than bank to bank transfers.

bewildering

I am curious. Why do you want to contribute to national insurance?

temple

I have used XE before.

However I'm trying to figure out whether anybody has used a service like XE for their NI payments, paid via ACH/EFT (wherein the amount can be specified in the recipient currency), as opposed to an international wire (which must be in the sender currency and therefore subject to fluctuations in interest rates - which might cause complications).

The documentation from HMRC suggested wire was OK, but nothing about ACH/EFT. Just wondering if anybody has used ACH/EFT.

temple

Increase UK pension allowance.

I think it's kind of a no-brainer - there's plenty of information on this site as to the reasons.

MidAtlantic

I think that many of the money transfer organizations have the ability for you to specify the sum received. People use them for mortgage or bill payments, for example, where the amount to be received is set.

I don't think how they receive it is an issue. They just want your money!

bewildering

Interesting, the figures look good. Unfortunately i was a undergrad then graduate student for most of my time in the UK. I don't think I can apply as i did not pay national insurance as a grad student.

Yorkieabroad

Wow..you're lucky...or maybe I'm unlucky! I've never received a payment schedule from them without me initiating it by calling to request one. I just have it on the calendar to call every other year or so, request a statement, and then pay it and hit pause for another couple of years.

robin1234

That's odd. I paid my six years arrears about four years ago, and they now send me an invoice for the next payment on an annual basis. Mine, they send out the first week of April. I just received this year's last Thursday.

rpjs

ACH/EFT just means XE/Custom House does a domestic bank transfer from their UK account to the recipient's UK account. So long as HMRC's documentation supplies the correct information, i.e. UK sort code and account number I think that's all you need.

MidAtlantic

That information is available on-line starting here:
http://www.hmrc.gov.uk/tools/bankacc...class2nics.htm

nun

I pay my Class2 NI with a foreign draft. HMRC send me a bill every year and I send a check back. The foreign draft costs me $20 from my US bank. I started paying by check before the electronic methods were easily available and it works well.