Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

Voluntary National Insurance contributions

Voluntary National Insurance contributions

Old Jul 2nd 2016, 7:07 pm
  #16  
Born again atheist
 
Novocastrian's Avatar
 
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,258
Novocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond reputeNovocastrian has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth View Post
Thanks for quick response.

Paying 7000 quid to get pension at retirement if full or even half pension makes sense for me. But I read that somewhere that if one has 10 hears credit, then the pension may be only 1/4 of the full pension, then may not be worth it;
A bit more than a quarter, 10/35ths.

You also asked if it affects other benefits. Assuming you get any state pension then not really. (I'm not certain).

At the moment though, being in receipt of any state pension (even a pound a week) gives you the right to state funded healthcare in any EU country.

But you may have heard what happened on June 23rd.
Novocastrian is offline  
Old Jul 2nd 2016, 7:13 pm
  #17  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 3,566
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth View Post
Paying 7000 quid to get pension at retirement if full or even half pension makes sense for me. But I read that somewhere that if one has 10 hears credit, then the pension may be only 1/4 of the full pension, then may not be worth it;
I believe the pension is now a straight line calculation so 10 years contributions will get you 10/35 ths of the full pension which is a little over a 1/4. (28.6%), which is £2,229/year.
durham_lad is offline  
Old Jul 2nd 2016, 9:29 pm
  #18  
Lost in BE Cyberspace
 
Joined: Jul 2016
Posts: 8,001
morpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Thanks for answers, even at 1/4 probably makes sense. Health care is something of course to consider.

As far as June 23, hopefully as long as emotions don't rule, EU and UK will work out some reasonable accommodation as there is a lot at stake for both sides.
morpeth is offline  
Old Jul 3rd 2016, 7:45 am
  #19  
Forum Regular
 
Joined: Apr 2014
Location: Northern California
Posts: 53
Exp76 is an unknown quantity at this point
Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth View Post
Thanks for answers, even at 1/4 probably makes sense. Health care is something of course to consider.

As far as June 23, hopefully as long as emotions don't rule, EU and UK will work out some reasonable accommodation as there is a lot at stake for both sides.
From your original post, you have 9 years paid up and you have the option of coughing up 7000 quid. I am guessing that amount is to pay for the last 10 tax years, which would bring your total qualifying years to 19 thereby qualifying for just over half of the new state pension. I thought it was worth it and am paying up myself. BTW you have up to 2023 to pay up and if you pay before 2019 there are no penalties.
Exp76 is offline  
Old Jul 3rd 2016, 12:34 pm
  #20  
Lost in BE Cyberspace
 
Joined: Jul 2016
Posts: 8,001
morpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Thanks for info on timing.
morpeth is offline  
Old Jul 3rd 2016, 1:52 pm
  #21  
BE Forum Addict
 
Perth's Avatar
 
Joined: Nov 2012
Location: Back in the UK!
Posts: 2,404
Perth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

May I request clarification please? I paid the 6 years catch-up, as that was what was allowable at the time. If indeed you can now pay for 10 years, could I pay the extra 4 now?
Perth is offline  
Old Jul 3rd 2016, 2:50 pm
  #22  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 3,566
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by Perth View Post
May I request clarification please? I paid the 6 years catch-up, as that was what was allowable at the time. If indeed you can now pay for 10 years, could I pay the extra 4 now?
Good question. I have 27 years contributions and in 6 years I will be eligible to get my OAP (age 67). Is it possible to pay the missing 2 years given that I already did the 6 year catch-up? Could I even delay taking the pension at 67 and keep up voluntary contributions for 2 years?
durham_lad is offline  
Old Jul 3rd 2016, 4:27 pm
  #23  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 50,807
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by Perth View Post
May I request clarification please? I paid the 6 years catch-up, as that was what was allowable at the time. If indeed you can now pay for 10 years, could I pay the extra 4 now?
AFAIK you are only allowed to pay upto six years in arrears and the current year, for seven years total. ..... There were apparently a few people who were allowed to pay additional arrears years when the qualifying period was increased from 30 to 35 years, but I am not sure what the exact rationale was.
Pulaski is offline  
Old Jul 3rd 2016, 5:29 pm
  #24  
Forum Regular
 
Joined: Apr 2014
Location: Northern California
Posts: 53
Exp76 is an unknown quantity at this point
Default Re: Voluntary National Insurance contributions

Originally Posted by Pulaski View Post
AFAIK you are only allowed to pay upto six years in arrears and the current year, for seven years total. ..... There were apparently a few people who were allowed to pay additional arrears years when the qualifying period was increased from 30 to 35 years, but I am not sure what the exact rationale was.
This page from the government contains the relevant info.

https://www.gov.uk/voluntary-nationa...ions/deadlines

The rationale seems to be to assist those who just missed out on getting a pension under the new regime and might have qualified for a partial pension under the previous one, e.g morpeths's 9 years.


You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.
You can pay these contributions at different rates if you pay by 5 April 2019.
Exp76 is offline  
Old Jul 3rd 2016, 8:40 pm
  #25  
BE Forum Addict
 
Perth's Avatar
 
Joined: Nov 2012
Location: Back in the UK!
Posts: 2,404
Perth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

[QUOTE=Exp76;11992590] a woman born after 5 April 1953 /QUOTE]

This would be me. Interesting. Will get right on it. Thanks!
Perth is offline  
Old Jul 3rd 2016, 10:54 pm
  #26  
Forum Regular
 
Joined: Apr 2014
Location: Northern California
Posts: 53
Exp76 is an unknown quantity at this point
Default Re: Voluntary National Insurance contributions

[QUOTE=Perth;11992735]
Originally Posted by Exp76 View Post
a woman born after 5 April 1953 /QUOTE]

This would be me. Interesting. Will get right on it. Thanks!
BTW, if you worked during the last 10 years the cost is much lower as you will pay Class 2 NICs for those years that you were employed. The 7000 figure that was quoted for morpeth is the cost of 10 years worth of Class 3 NICs.

Good luck !
Exp76 is offline  
Old Jul 4th 2016, 1:32 pm
  #27  
BE Forum Addict
 
Perth's Avatar
 
Joined: Nov 2012
Location: Back in the UK!
Posts: 2,404
Perth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond reputePerth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

[QUOTE=Exp76;11992864]
Originally Posted by Perth View Post

BTW, if you worked during the last 10 years the cost is much lower as you will pay Class 2 NICs for those years that you were employed. The 7000 figure that was quoted for morpeth is the cost of 10 years worth of Class 3 NICs.

Good luck !
Yes, have been working. We own a small business and I was able to pay Class 2.
Perth is offline  
Old Jul 12th 2016, 10:29 pm
  #28  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,407
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by Pulaski View Post
AFAIK you are only allowed to pay upto six years in arrears and the current year, for seven years total. ..... There were apparently a few people who were allowed to pay additional arrears years when the qualifying period was increased from 30 to 35 years, but I am not sure what the exact rationale was.
They will now go back to 2006-2007. I think this may be temporary.

Voluntary NI contributions | The Pensions Advisory Service
mrken30 is offline  
Old Jul 12th 2016, 11:22 pm
  #29  
Lost in BE Cyberspace
 
Joined: Jul 2016
Posts: 8,001
morpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond reputemorpeth has a reputation beyond repute
Default Re: Voluntary National Insurance contributions

Originally Posted by Exp76 View Post
From your original post, you have 9 years paid up and you have the option of coughing up 7000 quid. I am guessing that amount is to pay for the last 10 tax years, which would bring your total qualifying years to 19 thereby qualifying for just over half of the new state pension. I thought it was worth it and am paying up myself. BTW you have up to 2023 to pay up and if you pay before 2019 there are no penalties.
Thanks . I looked at letter again and I think what you write is correct. They show nine years paid, and the total amount they indicated I should pay. Still a bit odd it wasn't more precise as to what that payment would cover. Does it matter whether I am working, not working, or as consulant, whether I pay class 2 or class 3 ?
morpeth is offline  
Old Jul 13th 2016, 4:15 pm
  #30  
Forum Regular
 
Joined: Apr 2014
Location: Northern California
Posts: 53
Exp76 is an unknown quantity at this point
Default Re: Voluntary National Insurance contributions

Originally Posted by morpeth View Post
Thanks . I looked at letter again and I think what you write is correct. They show nine years paid, and the total amount they indicated I should pay. Still a bit odd it wasn't more precise as to what that payment would cover. Does it matter whether I am working, not working, or as consulant, whether I pay class 2 or class 3 ?
If you worked, even as a consultant ( my case BTW), you pay at Class 2 levels for those periods of employment. Otherwise its Class 3.
Exp76 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2022 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.