thinbrit

I don't have a UK bank, so that is not an option for me.
I always ask for a receipt to be mailed, which contains the tax year it was attributed to. The 'lost' payment to their 'old' bank account this year does indeed seem to be for all intents and purposes lost
I never checked if the bank account changed before sending, I have their bank account saved in my online banking transfers list of banks. I guess I'll be checking each year from now on

mrken30

If you have someone you can trust in the UK maybe you could setup direct debit using their account and pay directly into that persons account. Their account details are less likely to change and HMRC will pull the payment which may be safer.

scot47

In the past you could pay IN CASH at an office of the DHSS within the UKofGB&NI. That option is almost certainly gone.


For those overseas the cost has increased sharply. I paid my NICS and now reap the reward on a weekly basis (well every 4 weeks to tell the truth)

dossier

I presume it looks like after April 2018 it will be necessary to make voluntary contributions when working abroad only under a Class 3 basis?

Pulaski

That is my working assumption, but I haven't seen it anywhere in writing.

mrken30

Not sure how much trust is in the following. I didn't receive anything in April. My direct debits are still the same as hey have always been. Last one was taken out 11/11

If your required to make Self Assessment Tax Return

The proposed changes for customers who fill in the self employment and/or partnership pages on their tax return are as follows:

From 6 April 2015 your class 2 National Insurance contributions will be collected through your self Assessment return with your tax and any Class 4 National Insurance
After HM Revenue collect your last payment on 10 July 2015 your current direct debit agreement with HMRC will end. If your Self Assessment payments are up to date, and you would prefer to spread the cost of your tax and National Insurance contributions, there will be an option to set up a Budget payment plan. HM revenue will provide more details on how to do this closer to the time.
If you are not required to make a Self Assessment return

For example you are an examiner or invigilator, your direct debit payments will continue

You are working abroad, in any capacity, and hold an A1 certificate you will receive an annual payment request instead.

tbm

Autumn Statement 2016 confirmed that Class 2 NICs will be abolished from April 2018.

I assume Class 3 NICs will be the best option...

"As announced at Budget 2016, Class 2 NICs will be abolished from April 2018, simplifying National Insurance for the self-employed. The Autumn Statement confirms that, following the abolition of Class 2 NICs, self-employed contributory benefit entitlement will be accessed through Class 3 and Class 4 NICs. All self-employed women will continue to be able to access the standard rate of Maternity Allowance. Self-employed people with profits below the Small Profits Limit will be able to access Contributory Employment and Support Allowance through Class 3 NICs. There will be provision to support self-employed individuals with low profits during the transition."

Steve_

And for how many years is it, did we figure that out? I couldn't understand the guidance it was too vague.

Pulaski

It's 35 years for a full pension, has been for anyone reaching retirement age after April 2016. There is a partial reduction for any years that you were contracted out of SERPS.

Steve_

I thought it was 35 years for anyone who starts paying in after April 2016. Like I said, I couldn't understand the guidance and I didn't contract out of SERPS either so that added another wrinkle.

Pulaski

No, it's definitely based on people's retirement date, not the date they start paying in - because there was some transitional relief for people who had a gap in their contribution history more than six years before the change was announced. They were allowed to buy extra years to bring them up to 35 years even though under the "no more than six years in arrears" rule they wouldn't have been able to get to 35 years.

tbm

That would be nice, but no, it's as Pulaski wrote. 35 years for the full pension and a minimum of 10 years to get anything at all.

tbm

Not a big surprise but it's confirmed now that voluntary contributions will require class 3 contributions as of April 2018:

"Certain groups who are not self-employed in the UK but who are currently able to pay Class 2 contributions voluntarily, for example self-employed people working abroad, will need to pay Class 3 contributions to gain access to the new State Pension."

https://www.gov.uk/government/public...-contributions

mrken30

So up from £150 to almost £800 a year. Maybe not such a good deal seeing that the terms of the pension can be changed. They have already raised the age once since I first started paying in to the State pension.

I wonder if this will be automatic for people that have direct debits setup.

Pulaski

It used to be an "excellent" deal, now it's just a "great" deal. Of course it depends how many more years you need to pay in to reach 35 years, but still £715ish/yr seems to be a pretty good deal to me, especially as part of a portfolio of pension and non-pension investments.

In any case as I have often said, I see it more as a form of insurance - if I am poor in retirement I'll be glad I had paid in, if they make it means tested and I am wealthy in retirement then I really won't give a crap because it didn't cost me a whole lot anyway.