over_the_pond

Hello,

We moved to USA from UK last year. Plan to be here for a decade or more ( wherever life takes us ).

My wife was working in UK but hasn't had much success in finding a job in USA yet.

We were filling up form NI38 to pay voluntary NI for her. We are not sure if we should apply for Class 2 or Class 3 NI.

Should she declare herself as self employed and apply for class 2 NI ?

Should we delay applying until she gets a job (It has been a year already ...we don't know when that could happen).

Should she apply for class 3 NI and then change to class 2 NI if/when she gets a job?

Please let us know the right way forward.

Thanks !

Glasgow Girl

To qualify for Class 2 NICs you have to be have been employed or self employed in the UK immediately before leaving the UK AND be employed or self employed in the US. Not sure what immediately employed means, probably paying NICs through UK employment during the NI year in which you left.

Right now you would not qualify for Class 2 but would qualify for Class 3. You can switch from Class 3 to 2 when your wife becomes employed, which you should definitely do because of the difference in rates. Class 2 is a screaming deal, and Class 3 is still pretty good. If your wife needs the current years to qualify for the full state pension then I would start Class 3 now, but if she can miss a few years and still qualify then I would wait until she becomes employed, or self employed. You can back fill for up to 6 years so you can hedge your bets for a few more years.

over_the_pond

Thank you. She was employed in the UK immediately before leaving the UK. I will start the process for Class 3. Will switch to Class 2 when she is eligible. Thanks !