Class 2 NI. What about us poor expats paying voluntary contributions?
#376
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
I'm just planning to set this up. A couple of questions about form NI38 i.e. https://assets.publishing.service.go...NI38_12_17.pdf
Question 3 asks for UK address. Just leave this blank if already overseas?
Question 18 "Are you or will you be working abroad for an employer?" Does that mean a UK employer, or any employer?
Question 21: when you check "direct debit" does this mean that it authorizes direct debit every month from now on for tier 2 contribution? Or is there a further step to take?
Question 3 asks for UK address. Just leave this blank if already overseas?
Question 18 "Are you or will you be working abroad for an employer?" Does that mean a UK employer, or any employer?
Question 21: when you check "direct debit" does this mean that it authorizes direct debit every month from now on for tier 2 contribution? Or is there a further step to take?
Q3 - I put "N/A" as I'm already overseas (have been for almost 40 years)
Q18 - I answered 'Yes'. I believe the question is really asking about your 'self-employment status'. 'Working for an employer' is the opposite of 'self-employed' in this context. Since I was a regular employee of a US company, I answered 'yes'.
Q21, on the form I filled out last year, was 'What is your salary or wage?'. Q23 is "I wish to pay by" ... and 'direct debit' is an option. I can't help you here as I chose to go with annual payment option.
By total coincidence, yesterday I received a letter from HMRC, telling me my annual contribution for the period April 12 2020 to April 10 2021 is 158.60 GBP. Last year, I got a similar letter, but the amount was 159.00 GBP - a difference of 40p!
Last edited by Steerpike; May 1st 2021 at 7:39 pm.
#377
BE Enthusiast
Joined: Dec 2008
Posts: 525
#379
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
From my post June 28, 2020:
I just received the identical letter for 2021. Payee account is again given as 'GBS Re NICO Receipts HMRC'.
As with my payment last year, I first entered the payee name as "GBS Re NICO Receipts HMRC" and was warned it was not supported. But I forged ahead this time, but the transaction failed to complete. So I changed the payee name to "HMRC NIC receipts"; I got the same warning as with the first attempt, but - I forged ahead with it and this transaction DID go through! So it would seem:
1) both "GBS Re NICO Receipts HMRC" and "HMRC NIC receipts" trigger a warning, but
2) the former fails if you keep going while the latter goes through!
So once again, I'll just have to check the HMRC website in a month or two and verify it went through all the way to my account. Only 3 more years of this ...
I just received a letter from HMRC and they are telling me the amount to pay for the 2019-20 year. It's 159 GBP, somewhat as expected.
So I went into my UK HSBC account online, and tried to enter the payee details.
The HMRC letter gives the 'Pay To Account Name' as 'GBS Re NICO Receipts HMRC', and the A/C # as 30944793.
HSBC is flagging that combo as an unknown account, and is warning me not to proceed as the money may not go where I expect it to go.
Earlier this year, when I made my 'catch up' payments, the a/c # was the same as above, but the account name was simply 'HMRC NIC RECEIPTS', which I presume would pass the HSBC validation.
So - should I forge ahead and use the account name they give today - 'GBS Re NICO Receipts HMRC', or, use the account name that worked last time 'HMRC NIC RECEIPTS' ...?
I guess I could get up early tomorrow and call them ...
So I went into my UK HSBC account online, and tried to enter the payee details.
The HMRC letter gives the 'Pay To Account Name' as 'GBS Re NICO Receipts HMRC', and the A/C # as 30944793.
HSBC is flagging that combo as an unknown account, and is warning me not to proceed as the money may not go where I expect it to go.
Earlier this year, when I made my 'catch up' payments, the a/c # was the same as above, but the account name was simply 'HMRC NIC RECEIPTS', which I presume would pass the HSBC validation.
So - should I forge ahead and use the account name they give today - 'GBS Re NICO Receipts HMRC', or, use the account name that worked last time 'HMRC NIC RECEIPTS' ...?
I guess I could get up early tomorrow and call them ...
As with my payment last year, I first entered the payee name as "GBS Re NICO Receipts HMRC" and was warned it was not supported. But I forged ahead this time, but the transaction failed to complete. So I changed the payee name to "HMRC NIC receipts"; I got the same warning as with the first attempt, but - I forged ahead with it and this transaction DID go through! So it would seem:
1) both "GBS Re NICO Receipts HMRC" and "HMRC NIC receipts" trigger a warning, but
2) the former fails if you keep going while the latter goes through!
So once again, I'll just have to check the HMRC website in a month or two and verify it went through all the way to my account. Only 3 more years of this ...
#380
BE Enthusiast
Joined: Dec 2008
Posts: 525
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
The account number is unchanged, so the funds will get to the right place regardless of payee name.
I had the same issue recently sending some money via Transferwise. They've changed their name to Wise, which wasn't recognised by my bank, but the payment went through when I used the old Transferwise name.
I had the same issue recently sending some money via Transferwise. They've changed their name to Wise, which wasn't recognised by my bank, but the payment went through when I used the old Transferwise name.
#381
Forum Regular
Joined: Jun 2008
Location: Scotland --> NJ --> TX
Posts: 152
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
Jumping on this thread to get some help. I'm trying to make up my shortfall years with Class 2 voluntary payments. It's telling me my shortfall is £880.80 x 6 yrs and £780 x 1 yr for a total of £5584.80. I left the UK in 2012 and prior to leaving was self employed. I'm self employed in the US. Can someone help me understand why my shortfall is not the standard Class 2 rate of £158.60 (£3.05 x 52) that so many others seem to have? I spoke with HMRC in the UK last week to get my personal details all updated and they gave me the bank account details to go ahead and make the payment whenever I'm ready but I'm reluctant to just go ahead and pay without checking it's correct.
#382
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
Jumping on this thread to get some help. I'm trying to make up my shortfall years with Class 2 voluntary payments. It's telling me my shortfall is £880.80 x 6 yrs and £780 x 1 yr for a total of £5584.80. I left the UK in 2012 and prior to leaving was self employed. I'm self employed in the US. Can someone help me understand why my shortfall is not the standard Class 2 rate of £158.60 (£3.05 x 52) that so many others seem to have? I spoke with HMRC in the UK last week to get my personal details all updated and they gave me the bank account details to go ahead and make the payment whenever I'm ready but I'm reluctant to just go ahead and pay without checking it's correct.
#383
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
To qualify for Class 2 Voluntary rates you have to have been employed immediately prior to moving abroad. Not sure what immediately means. I qualified for Class 2 but my employment the UK overlapped with my employment in the US because I had unused holidays and my UK company kept me on the payroll until they ran out. In my case there was no gap between jobs which would meet the immediate criteria. There must be some definition of what “immediate” means but I dont know what it is, you would think they would allow a short gap. Or it could be that employed excludes self employment.
#384
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
To qualify for Class 2 Voluntary rates you have to have been employed immediately prior to moving abroad. Not sure what immediately means. I qualified for Class 2 but my employment the UK overlapped with my employment in the US because I had unused holidays and my UK company kept me on the payroll until they ran out. In my case there was no gap between jobs which would meet the immediate criteria. There must be some definition of what “immediate” means but I dont know what it is, you would think they would allow a short gap. Or it could be that employed excludes self employment.
#385
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
I presume he was quoted the Class 3 rate.
#386
Forum Regular
Joined: Jun 2008
Location: Scotland --> NJ --> TX
Posts: 152
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
That's it! On further reading, the Class 3 rate of £15.40 per week x 52 weeks is exactly the £800.80 shortfall I'm seeing on my account. Need to go and read up and understand difference between Class 2 and Class 3. Thanks for that.
#387
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
https://www.tax.service.gov.uk/check...count/nirecord
page yet?
I paid mine in April and it still shows as: "2020-21 Your record for this year is not available yet"
I know it took a while to update before, but 3+ months seems too long?
#389
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
Has anyone had their class 2 payment for 2020/21 show on the:
https://www.tax.service.gov.uk/check...count/nirecord
page yet?
I paid mine in April and it still shows as: "2020-21 Your record for this year is not available yet"
I know it took a while to update before, but 3+ months seems too long?
https://www.tax.service.gov.uk/check...count/nirecord
page yet?
I paid mine in April and it still shows as: "2020-21 Your record for this year is not available yet"
I know it took a while to update before, but 3+ months seems too long?
#390
BE Forum Addict
Joined: Sep 2005
Location: Vancouver, BC (originally from Huddersfield, W. Yorkshire)
Posts: 1,223
Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio
Has anyone had their class 2 payment for 2020/21 show on the:
https://www.tax.service.gov.uk/check...count/nirecord
page yet?
I paid mine in April and it still shows as: "2020-21 Your record for this year is not available yet"
I know it took a while to update before, but 3+ months seems too long?
https://www.tax.service.gov.uk/check...count/nirecord
page yet?
I paid mine in April and it still shows as: "2020-21 Your record for this year is not available yet"
I know it took a while to update before, but 3+ months seems too long?