Steve_

It might be a great deal but I'm getting nauseated by the paper chase and the endless moving of the goal posts. Just when you think you understand it, they change it.

It would be nice under Class 3 if you could just pay the whole thing off at once, say you still have ten years to go, you pay them £7,230 and that's the end of it. Constantly having to pay these tiny sums year after year drives me nuts.

christmasoompa

I never said they didn't have to pay for Class 2 as well as Class 4, I was simply pointing out that the only self-employed people paying just Class 2 in the UK are those that earn a pittance. So I don't see how that's unfair or why they should be made to pay Class 4 personally.

But then I think expats are bloody lucky to be able to pay a tiny amount and still gain a state pension. If I were Prime Minister.........

jb82

I know what you are saying but technically class 4 has nothing to do with state pensions. You only need class 2 for that. So someone self employed in the UK vs an expat are paying the same for the state pension at present no matter the level of income (as long as it is above the tiny limit)

nun

Actually 25.....I had 3 years of NICs for time I was at Sixth Form College.

jb82

phd? (a clever slacker 😄)

LondonSquirrel

I started working in 1987 aged 22 although I worked a Saturday job for 2 years and worked every school holiday but I was under 16 so no NI to pay.

nun

Yep, I ignored all the HMRC letters saying that I could pay voluntary contributions while at university, but when I move to the US I decided to start paying them.

fulwood

Nun our life's stories are somewhat similar. Came to US in 1984 and I will be 54 this year.. Anyway I am investigating this still as I am now an independent contractor (have been for 3 years) and already have the info from HMRC as to how many years of NI contributions I have. But appears I have to pay Class 3 which is very expensive. I can afford Class 2 NI contributions but not Class 3. They want my work history as well from day I arrived in US and can't remember everything so been putting it off.

jb82

If you were employed or self employed when you left the uk, lived for 3 years continuously in the uk at some point before now and are employed or self employed in the usa you can pay class 2. You should be able to go back at least 6 years (maybe more) as well and pay those for more qualifying years if you were employed or self employed for those years.

See page 9 in particular.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366853/ni38_1_.pdf

There is a form to fill out and you have to attach extra details of your employment as specified in the document.

nun

Yes quite similar.......you should look at the NI38 leaflet to see what you qualify for. jb82 has nicely summarized the Class 2 and Class 3 criteria. I've been paying Class 2 because I've been with employed or self employed in the USA for the last 30 years, but Class 3 is still amazing value for money given today's benefit

Steve_

£723 is very expensive? More expensive than £145 but it's not that bad.

Bear in mind they're going to start invoicing people in July apparently, so you could put it on a credit card.

durham_lad

I think it is still a good deal. I'm adding 10 years to my service using Class 3 and should start collecting in 8 years time. If I die in my late 60's or early 70's so be it, but if I live to the average life expectancy it will have been an excellent investment.

kodokan

Roughly my thinking - 'I'll really regret it if I live long enough that I would've won financially, but didn't pay in. On the other hand, if I die prematurely, then I won't care, what with being dead.'

So paying in = pleased, or dead.
Not paying in = regretful, or dead.

Present Me is very good at deferred gratification, and paying in seems to give me the most potentially satisfying outcome in the future. I'd be saving that amount plus a ton more for retirement anyway, so it's really just a question of asset allocation. Paying for what's effectively a deferred guaranteed income annuity means I can be a little more adventurous with other retirement investments.

Michael

I suspect the law was passed primarily to entice expatriates to make Class 2 NI contributions that went to live in low paying 3rd world countries with little or no state pension plans and then returned to the UK when they were elderly. In that way the UK government gets some money if they contribute but nothing if they have to go on the dole.

However, I suspect that many that work in low paying 3rd world countries may not have enough money to contribute.

Like all good intentions, often it becomes a bonanza for those that need it the least.

nun

Class 2 is basically a way to get the self employed a basic state pension at a very nice pice....is a perk for the self employed. Although eventually having to pay Class 4 reduces that a bit.

Before the 1990s voluntary N I was paid as Class 3. I made a number of payments at that higher rate and then the law changed to allow Class 2 voluntary payments. I'm no sure why, but it was a great deal