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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 Jan 14th 2017, 9:41 am
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by mrken30 View Post
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.
I pay Class 3 contributions, I called up and they said that to make payments I needed a reference number for any particular year, but past years if not making a full payment per year, I would have to write to them to make sure payments applied, but current year payments can be made weekly. I had calculated the amounts I had to pay for gap years, then just set up standing order to pay over next few years- but I used reference number from last bill I received- now they say that only applies to particular year. Are they correct for every particular year a difference reference number required ?
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Old Mar 16th 2017, 3:42 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I just got my 2017/2018 NIC statement.

I pay Class 2 NICs. They've gone up by a few pence each week.

There was nothing on the form indicating Class 2 would be abolished next April.
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Old Mar 16th 2017, 3:43 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I hear they have just reversed the NI changes that were introduced in the budget. No idea if this will affect expats.
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Old Mar 16th 2017, 3:43 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I paid a lump sum of six years for Class 2 but I can't make payments for tax years 2001-2005. I don't see why they can't allow it. What is the reasoning behind the 6 year lookback?
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Old Mar 16th 2017, 3:44 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by mrken30 View Post
I hear they have just reversed the NI changes that were introduced in the budget. No idea if this will affect expats.

I think this is just reversing Hammond's NIC increase and has nothing to do with abolishing Class 2 NIC
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Old Mar 16th 2017, 4:30 pm
  #81  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by drhewitt View Post
I think this is just reversing Hammond's NIC increase and has nothing to do with abolishing Class 2 NIC
Yes. Class 2 NI was abolished by Osborne. It will be gone April 2018 and I assume that expats will then pay Class 3 voluntary NI.
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Old Mar 16th 2017, 4:48 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by mrken30 View Post
I hear they have just reversed the NI changes that were introduced in the budget. No idea if this will affect expats.
Do you realise that most of the sticks you pick up have another end?
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Old Mar 16th 2017, 6:12 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by nun View Post
Yes. Class 2 NI was abolished by Osborne. It will be gone April 2018 and I assume that expats will then pay Class 3 voluntary NI.
I assume that too although I have yet to see anything that formally states it (?).
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Old Mar 19th 2017, 4:08 am
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by Giantaxe View Post
I assume that too although I have yet to see anything that formally states it (?).
If you go back one page and look at post #73, you'll see me quoting a government document about NIC 3 for people overseas.

http://britishexpats.com/forum/usa-5.../#post12151171
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Old Mar 19th 2017, 9:55 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Britishexpats.com quoted in Alan Partridge-esque headlined article... It did sound like an amazing deal.

https://www.theguardian.com/money/2017/mar/18/national-insurance-self-employed-400pc-more-contributions
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Old Mar 19th 2017, 9:59 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by Pulaski View Post
It used to be an "excellent" deal, now it's just a "great" deal.
That just got quoted in the Guardian, Pulaski
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Old May 5th 2017, 11:54 am
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

I wrote to HMRC and this was their reply....


Thank you for contacting HMRC Residency.

The Government is currently proposing to abolish Class 2 NICs for self employed people from April 2018. This means that for some customers who previously paid voluntary Class 2 NICs or a special rate of Class 2 NICs this option will no longer be available. To protect benefit entitlement they may need to consider paying Class 3 NICs. Further information will be provided on Gov.uk as it becomes available".
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Old May 5th 2017, 11:58 am
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

If we have to pay more for Class 3 we will lose the benefits associated with Class 2 NICs.
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Old May 5th 2017, 5:00 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by drhewitt View Post
If we have to pay more for Class 3 we will lose the benefits associated with Class 2 NICs.
And the Government is allowed to move the goal posts on when you can start claiming. So some people will get extra years of payments for the same cost.

https://www.financialadvice.co.uk/ne...0-by-2050.html
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Old May 5th 2017, 5:49 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributions?

Originally Posted by drhewitt View Post
If we have to pay more for Class 3 we will lose the benefits associated with Class 2 NICs.
I am not sure what you mean by that? Aren't they just two different tariffs for buying NI contributions?
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