Zhenhua

Hello,

This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment. My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI?
Any info will be highly appreciated!!

Confucius

If you won't go back to the UK anymore,you have nothing to worry about...

Zhenhua

Thanks for the reply, Confucius. You are saying if I don't come back to UK anymore, I can ask my employer to stop deducting money from my payslip?

Confucius

You paying money to HM government when you won't go there anymore is like me paying taxes to the Argentinian government...Why pay when you won't step foot in a country ever again???

Zhenhua

Absolutely, I don't understand why the HR asked me to do that. Will call them tomorrow morning and see what they say. Thanks a lot.

Confucius

Not a problem...You'll pay me next time...

Zhenhua

Sure, if a number of pints is what you are after.

Confucius

Sorry to disappoint you, I don't drink...

BlackCloud

No doubt there are some British citizens looking in on this thread attracted by the header...

So, the only reason UK citizens who are or may return to the Uk sometime would pay NI is for;

1) unemployment benefits if becomes unemployed in the UK or

2) more importantly to get 30 years contributions in the bag so one day a basic state pension will be paid

NI payments are around £450 a year I think

Is this about right?

Eeyore

Add 3) to be able to access NHS services for free while visiting the UK. We've made use of this several times to get vaccinations for Madeleine that you can't get here.

British expats get a 3-year payment holiday during which time they're eligible for full NHS treatment like any taxpaying Brit, but after 3 years you're supposed to start paying NI again if you want to maintain your entitlement.

Zhenhua

According to http://www.listentotaxman.com, my contribution would be 1,900 for 2008/09. This is a lot to me.

arbroath_abroad

Hi Eyore, I know this has been done to death, but where did you get that from..

I never realised that...

Looks like i need to start paying again...

andrewpops

I went through this with my current employer, if you are transferring overseas, you are still liable for the first year of NI then no obligation afterwards. If you were to transfer your employment to an overseas employer, you have no obligation to pay NI at all.

Check out http://www.hmrc.gov.uk/cnr/osc.htm - specifically

Workers who are sent to work abroad by their employers in countries not covered by EC or Reciprocal Agreements have to pay Class 1 contributions for the first 52 weeks that they work abroad where certain conditions are satisfied. Once the 52 weeks have come to an end the guidance and advice that we provide indicates that these employees should pay Class 3 contributions.

Class 3 Contributions are around £7.35 a week and entitle you to the same benefits as Class 1. I would suggest you talk with your employer about either recompensing you for the NI (in some way) or transfer your contract employment to another company in UAE.

Hope this helps.

Eeyore

The NI website, IIRC.

arbroath_abroad

cheers