Go Back  British Expats > Living & Moving Abroad > Australia
Reload this Page >

Voluntary NI contributions and tax deductions

Voluntary NI contributions and tax deductions

Old Jan 23rd 2010, 3:30 am
  #1  
BE Enthusiast
Thread Starter
 
Joined: Apr 2003
Location: West Melbourne
Posts: 462
wongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nice
Default Voluntary NI contributions and tax deductions

Hi

I'm just in the middle of paying my UK Class 3 National Insurance contributions to get another three years counted toward my UK basic state pension. I'm Aussie domiciled. Just wondered whether such contributions can be counted as a tax deduction on my aussie tax return? Does any know?

Neil
wongstonn is offline  
Old Jan 23rd 2010, 3:53 am
  #2  
BE Forum Addict
 
Joined: Mar 2009
Posts: 1,289
ozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond reputeozhappy981 has a reputation beyond repute
Default Re: Voluntary NI contributions and tax deductions

Originally Posted by wongstonn
I'm just in the middle of paying my UK Class 3 National Insurance contributions to get another three years counted toward my UK basic state pension. I'm Aussie domiciled. Just wondered whether such contributions can be counted as a tax deduction on my aussie tax return? Does any know?
UK NI contributions cannot be counted as a tax deduction in your aussie tax return. (Probably not what you wanted to hear ...)
ozhappy981 is offline  
Old Jan 23rd 2010, 4:05 am
  #3  
BE Enthusiast
Thread Starter
 
Joined: Apr 2003
Location: West Melbourne
Posts: 462
wongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nice
Default Re: Voluntary NI contributions and tax deductions

Thanks for that. Knew it was a long shot!
wongstonn is offline  
Old Jan 23rd 2010, 8:41 am
  #4  
BE Forum Addict
 
Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
louie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond repute
Default Re: Voluntary NI contributions and tax deductions

Do you work? If so, you may be able to pay (cheaper) Class 2 contributions instead of Class 3. See this booklet, page 9.
louie is offline  
Old Jan 23rd 2010, 8:59 am
  #5  
Lost in BE Cyberspace
 
Joined: Apr 2004
Posts: 10,375
jad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond repute
Default Re: Voluntary NI contributions and tax deductions

Does anyone know what is the maxium amount of years you can pay, if you are living overseas.

Ie if you had paid 15 years can you backpay the other 15 years in case you go back to UK.
jad n rich is offline  
Old Jan 23rd 2010, 9:12 am
  #6  
BE Forum Addict
 
Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
louie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond reputelouie has a reputation beyond repute
Default Re: Voluntary NI contributions and tax deductions

Usually you can backdate 6 years (see page 12 of the booklet), but the idea is that you pay as you go, not in arrears.

Unlike the Australian state pension, you still get the pension if you qualify, even if not in the UK, although it is frozen at the amount to which you are entitled when it starts.
louie is offline  
Old Jan 23rd 2010, 9:18 am
  #7  
Lost in BE Cyberspace
 
Joined: Apr 2004
Posts: 10,375
jad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond reputejad n rich has a reputation beyond repute
Default Re: Voluntary NI contributions and tax deductions

Originally Posted by louie
Usually you can backdate 6 years (see page 12 of the booklet), but the idea is that you pay as you go, not in arrears.

Unlike the Australian state pension, you still get the pension if you qualify, even if not in the UK, although it is frozen at the amount to which you are entitled when it starts.
Thanks, I really must find the time to read all the stuff on this subject
jad n rich is offline  
Old Jan 24th 2010, 12:57 am
  #8  
BE Enthusiast
Thread Starter
 
Joined: Apr 2003
Location: West Melbourne
Posts: 462
wongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nicewongstonn is just really nice
Default Re: Voluntary NI contributions and tax deductions

Originally Posted by jad n rich
Does anyone know what is the maxium amount of years you can pay, if you are living overseas.

Ie if you had paid 15 years can you backpay the other 15 years in case you go back to UK.
For the majority of people with UK citizenship 30 years worth of contributions will give entitlement to 100% of the basic UK state pension, regardless of where you currently live. There's no need to return to the UK to maintain or gain entitlement. If one has paid less than 30 years, then your entitlement is pro-rated, so with 15 paid up years of contributions one is entitled to 50% of the UK basic state pension.

There's doubtless a more precise definition on the website of the UK Department of Work and Pensions which you might wish to read, but hopefully what I wrote above will get you in the ballpark.

Neil
wongstonn is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.