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Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Old Apr 10th 2016, 8:43 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by scot47 View Post
Goal posts continually shifting. I think it is safe to assume that we cannot trust any of these b***ers.
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Old Apr 11th 2016, 5:58 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I think the goal posts have been moved to give incentives for people to save. The lifetime ISA , the 25% tax free lump sum from pension funds, reducing tax on savings, increased ISA allowance, are all aimed at supplementing State Pension. Unfortunately the tax treaty does not allow us to utilize these changes.
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Old Apr 14th 2016, 12:38 am
  #33  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Look on the bright side, the UK is one of only six countries the US has an estate tax treaty with, so at least when you die you aren't going to pay any inheritance tax.
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Old May 7th 2016, 6:16 am
  #34  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Hi All

Am seeking advice on this topic.

I am 32 years old, worked in the UK 5 years and then moved on in 2009 abroad. Have been paying since then Class 2 voluntary contribution, around 150 GBP per year.

Honestly, reading all the discussions, am not sure if I get it.

Am I right saying Class 2 dissapears and, if I want to continue paying voluntary contributions and - maybe - getting something in return, I should now pay class 3 which are going to be sensibly more expensive?

Just a few weeks ago, I received my class 2 contribution letter, again, another 150 GBP.

Is it worth it for me to continue contributing? opinions?

In the HMRC website, I just confirmed the following I will reach state pension age in 2051!

Last edited by LooPtruy; May 7th 2016 at 6:22 am. Reason: new info
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Old May 9th 2016, 1:53 am
  #35  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I'm not sure if I get it either.

Class 2 carries on for another couple of years so I would wait and see if HMRC spit out instructions we can actually understand.

The information on the website is too vague.
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Old May 9th 2016, 11:49 am
  #36  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by LooPtruy View Post
Hi All

Am seeking advice on this topic.

I am 32 years old, worked in the UK 5 years and then moved on in 2009 abroad. Have been paying since then Class 2 voluntary contribution, around 150 GBP per year.

Honestly, reading all the discussions, am not sure if I get it.

Am I right saying Class 2 dissapears and, if I want to continue paying voluntary contributions and - maybe - getting something in return, I should now pay class 3 which are going to be sensibly more expensive?

Just a few weeks ago, I received my class 2 contribution letter, again, another 150 GBP.

Is it worth it for me to continue contributing? opinions?

In the HMRC website, I just confirmed the following I will reach state pension age in 2051!
For now it's "keep calm and carry on".

I also just got my Class 2 contributions letter for 2016 and its £145.60 so I'm going to pay it and get another year of NI on my record.
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Old May 12th 2016, 12:06 am
  #37  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

It's such a thrilling letter isn't it.

On 12-08-2016 we're going to debit £11.20 from your account.

£11.20!

Let me call the bank and make sure I've got sufficient funds!
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Old May 12th 2016, 3:44 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

This is something I have been meaning to look into since we moved here - and seems the goal posts are changing! We have just sent off for our statement - so seems best course of action is to pay as much Class 2 as we can now and then re-assess when the rules change.

One thing I haven't been able to work out despite google searches is what constitutes a year. I know that sounds like a stupid question - but I took 6 months out of work a few years ago when still in the UK. Does that count as a tick for that tax year and counts as 1 - or does 6 months only count as 0.5?

Or even if we moved here mid year - will the 6 months in the UK prior to moving count as a tick for NI paid that year - or will it just count as 0.5?

Last edited by H Bomb; May 12th 2016 at 3:49 pm.
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Old May 12th 2016, 3:57 pm
  #39  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by Steve_ View Post
It's such a thrilling letter isn't it.
The new and somewhat cryptic return address was interesting. No street or town, just HMRC and a post code.
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Old May 12th 2016, 5:01 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by H Bomb View Post
This is something I have been meaning to look into since we moved here - and seems the goal posts are changing! We have just sent off for our statement - so seems best course of action is to pay as much Class 2 as we can now and then re-assess when the rules change.

One thing I haven't been able to work out despite google searches is what constitutes a year. I know that sounds like a stupid question - but I took 6 months out of work a few years ago when still in the UK. Does that count as a tick for that tax year and counts as 1 - or does 6 months only count as 0.5?

Or even if we moved here mid year - will the 6 months in the UK prior to moving count as a tick for NI paid that year - or will it just count as 0.5?
Found this for you, which might be helpful: 'From 6th April 2010 a qualifying year is any year in which your earnings factor is equal to or more than the Lower Earnings Level for that year.'

Qualifying Years | Rights 4 Seniors

Sounds like anyone earning a reasonable salary would get a full year's credit based on their contribution to date, even if they only worked for 6 months. Your statement should tell you either way, and you'd be able to make up any difference to bring it up to a full year if not.
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Old May 12th 2016, 5:06 pm
  #41  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by H Bomb View Post
We have just sent off for our statement...
Don't hold your breath. 4 weeks and counting since I sent for mine. Even with the IOM process tacked on that's a silly response time.
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Old May 13th 2016, 1:35 am
  #42  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by H Bomb View Post
This is something I have been meaning to look into since we moved here - and seems the goal posts are changing! We have just sent off for our statement - so seems best course of action is to pay as much Class 2 as we can now and then re-assess when the rules change.
You can go back and pay so many missed years, I forget how many, I know I did it for a couple of years.
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Old May 13th 2016, 1:40 am
  #43  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by nun View Post
The new and somewhat cryptic return address was interesting. No street or town, just HMRC and a post code.
My own personal bureaucratic favourite is I-797 because they don't half make an effort to make it look impressive on security paper with "UNITED STATES OF AMERICA" across the top.

I'm sure if you've just been told you've been granted refugee status or something you'll treasure it for a lifetime but most of the time it's along the lines of: "We got your I-129. Thanks for paying the fee."
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Old May 13th 2016, 9:52 am
  #44  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Hello - can anyone working abroad apply to pay Class 2 contributions (till they get phased out) or do you have to be "self-employed" abroad? I have a job at a company which has a branch in the UK.

Thanks for advice.
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Old May 13th 2016, 11:17 am
  #45  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by Chipsnsalsa View Post
Hello - can anyone working abroad apply to pay Class 2 contributions (till they get phased out) or do you have to be "self-employed" abroad? I have a job at a company which has a branch in the UK.

Thanks for advice.
To pay Class 2, you have to be employed. It doesn't have to be self-employed.
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