madao

Hi

Does anyone have any knowledge of UK National Insurance top ups?

We have been NZ resident now for 3.5 years and out of the UK for 5. Prior to leaving the UK we had 10 - 12 years of NI contributions.

I understand it's possible to continue to pay in to NI while out the country, and top up for years missed too, in order to keep eligible for NHS treatment and a pension should you decide to return to the UK in the long term.

Is this correct and how do you go about doing it?

Snap Shot

https://www.google.co.nz/national-in...-you-go-abroad

I think you can pay National Insurance if you go abroad but I'm not up to date on the difference between class 2 and class 3 contributions except to say one is much cheaper than the other. I don't know whether that would affect a pension or benefit claim in the future if a claim is made. I would like to do it but all the while we are on one income we will not be able to afford to pay National Insurance to make up for the missing years since we left Britain in 2011. It's something I will look into should we return. I assume, if we get jobs, N.I. will be deducted at source as normal. Then, we'll see about sorting the gap created by non-payment of it whilst overseas.

Quote from another B.E. poster:

New Zealand has a Social Security Agreement with the UK. Although I don't know heaps about it, I do know that there's some provisions for people who are temporarily in the UK to be allowed to count that time as being ordinarily resident in New Zealand (in other words, although someone's in the UK, the time you're in Britain will be counted as though you're still in NZ. This may mean that you can continue receiving your National Super.

As I say, I don't know heaps about it - here's a couple of links that give you the basics
http://www.workandincome.govt.nz/ind...-pensions.html
New Zealand Superannuation - Work and Income

Could you follow up with the NZ Dept Work and Income ?

Another B.E. poster remarks:

You can use your NZ superannuation to qualify for UK state pension payments. You should contact the International Pensions people up in Newcastle.

Pension Service contact details
The Pension Service
The International Pension Centre
Tyneview Park
Newcastle Upon Tyne
NE98 1BA
United Kingdom
+44 191 218 7777
+44 191 218 7021
[email protected]
www.thepensionservice.gov.uk

I'm wondering if the superannuation element of the income tax we have paid can go towards National Insurance payments ? That's superannuation. Not Kiwi Saver. To qualify for superannuation pay outs Ministry of Social Development require New Zealand citizens to have spent a minimum of five years in NZ after the age of fifty. So, if a 53 year old Kiwi leaves NZ before the age of 55 could they return to NZ to complete the remaining couple of years qualifying time to be eligible to claim superannuation ? I understand both can't be claimed by an individual as the reciprocal Social Security arrangement between NZ and the UK means that superannuation payments paid in NZ can be claimed from the UK government and vice-versa. If that's the case, can NZ superannuation contributions be requested by the UK government with regard to paying any, 'missing' National Insurance contributions prior to getting to pension age ?

BEVS

I'll move this to the MBTTUK forum for you.

Several folk on there can help from their own experiences.

Great post BTW Snapshot.

Snap Shot

You're most welcome.

Pulaski

This is a frequent topic of conversation in the US forum, with several threads over the past two years.

You can pay upto six years in arrears, so seven including "this year".

Class 2 contributions are available if you are employed overseas and were employed immediately before you left the UK. They run around £143-£145/yr.

If you don't qualify for Class 2, you can pay Class 3, which is about £715/yr.

To Bevs question, "a year is a year", no matter which Class of contribution you paid. 35 years gets you a "full" pension under the new rules; there may be some downward adjustment if you were "opted out of SERPS" during any of your years. You get credited with years at university or college, plus years at school after age 16, so if you spent three years at uni, you graduate with five qualifying years already in the bag.

Victor Meldrew

I have just returned to UK (July 2015) from overseas (Middle East).

I paid class 2 whilst overseas which is cheap as chips and will contribute to your state pension years.

I stopped mine at 30 years as this was the requirement at the time. Now I am home, I have tried to pay additional years to make the 35 years and have been told a) that they would have to be class 3 contributions and b) I can't anyway as my birthdate doesn't fit within a set range.

If I had done this from overseas it would have cost me around £600

So my advice is to definitely apply to pay, including any back years you can as, when you get home, it is a lot more expensive if it is possible at all.

PS I am currently unemployed and can register as such and have my 'stamp' paid for me but this is not as straightforward as it sounds, so will be waiting until after Christmas and reconsider my situation then.

scot47

Payment of National Insurance has no direct bearing on eligibility for NHS, which is based on residence.
You have to apply to Longbenton for permission to pay while overseas. A careful examination of the different categories will show you the options.

TopNik

Hi madao,

Check out this website which will help you:

Voluntary NI contributions | The Pensions Advisory Service

TopNik

Hello Victor Meldrew,

If you are considering leaving the UK, please be aware that split year rules include residence conditions for the following tax year after your return to the UK also.

If you do not meet these conditions you will not be entitled to split year treatment and your earnings prior to your return to the UK will be liable for UK income tax.

Bud the Wiser

I'm looking to pay 5 years of Class 2 contributions to top up my NI payments to 35 years. I've had a look at form CF83, but it would appear most of the questions are for someone who is planning to go abroad, not someone who is already abroad. How do I find out what I have to pay to catch up and how do I pay it?

I have 30 years of payments up to and including 2002/2003

Thanks.

Pulaski

Have you "applied" for Class 2 eligiblity? You first need to complete the eligibility form and submit it, then you hear back and the tell you if you are eligible for Class 2 or Class 3, and how much you can pay including arrears.

If you haven't applied you need to phone in DWP international help line number.

Victor Meldrew

Hello TopNik, best laid plans etc. Having returned to UK I have not been able to find gainful employment. I have been given a verbal offer of a job back in Saudi with a September 2016 start (there is a possibility of an April 2016 start but this is to be confirmed).

Based on what you are saying, this is my 'history':
Worked from September 1st 2001 - July 3rd 2015 in Middle East
Returned UK July 3rd 2015 and will be leaving for a 2 year contract in Saudi from September 2016.

Are you saying that, under this scenario I may be asked for tax on my overseas income April 2015 - July 2015?

I'm confuzzled!

fulwood

Can someone please include the link for Class II eligibility for NI contributions?

Pulaski

You mean where to phone up? Or what the criteria are? ..... I would not recommend trying to self-identify, .... just call up and ask for the forms. The general requirement is that you worked/ were employed immediately before leaving the UK, and worked/ were employed immediately after leaving the UK. So people who were unemployed before or after leaving the UK would not, as far as I understand the rules, qualify for Class 2, and neithdr would someone eho "went traveling".

fulwood

I was unemployed for a few months after arrival in US. Used that time to get to know my dad and step-family.