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

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

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Old May 1st 2021, 7:30 pm
  #376  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by classicmds
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?
I filled this out early last year and was 'accepted', and now everything is working like clockwork.

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.
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Old May 1st 2021, 10:10 pm
  #377  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by classicmds
Question 18 "Are you or will you be working abroad for an employer?" Does that mean a UK employer, or any employer?
Any employer
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Old May 2nd 2021, 4:26 am
  #378  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by Steerpike
I filled this out early last year and was 'accepted', and now everything is working like clockwork.
Thanks!
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Old May 2nd 2021, 11:47 pm
  #379  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

From my post June 28, 2020:

Originally Posted by Steerpike
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 ...
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 ...
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Old May 3rd 2021, 12:01 am
  #380  
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Default 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.
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Old Jun 29th 2021, 6:24 pm
  #381  
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Default 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.
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Old Jun 30th 2021, 5:15 am
  #382  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by CA-NY
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.
The only thought that comes to mind is the fact you were / are self-employed, but not sure why that would cause the difference. I would call them again and ask. In the few calls I've made to them, they've been very helpful. Please keep us posted as to what you find!
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Old Jun 30th 2021, 1:04 pm
  #383  
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Default 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.
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Old Jun 30th 2021, 8:48 pm
  #384  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by Glasgow Girl
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.
What's weird here is, he was offered 'class 2' but at a different rate, which sounds contradictory. In my mind, you either qualify or not; I wasn't aware of different types of qualification at different rates. But I'm no expert!
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Old Jun 30th 2021, 9:09 pm
  #385  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by Steerpike
What's weird here is, he was offered 'class 2' but at a different rate, which sounds contradictory. In my mind, you either qualify or not; I wasn't aware of different types of qualification at different rates. But I'm no expert!
I presume he was quoted the Class 3 rate.
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Old Jun 30th 2021, 9:27 pm
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by Giantaxe
I presume he was quoted the Class 3 rate.
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.
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Old Aug 4th 2021, 8:24 pm
  #387  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by tht
Got my class 2 payment request for 2020-2021 today, GBP158.60. New account details on the letter, checked them and they are the same as on the HMRC webpage. HSBC showed it as “Account not supported” but got it to send. 10 more years worth to go until I reach the max.
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?
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Old Aug 4th 2021, 8:44 pm
  #388  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Yes mine has updated for 2020-2021. It was probably about 3-4 weeks ago that it did for me.
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Old Aug 4th 2021, 9:33 pm
  #389  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by tht
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?
I just looked, and no, mine also shows 'not available' ...
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Old Aug 4th 2021, 9:36 pm
  #390  
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Default Re: Class 2 NI abolished. What about us poor expats paying voluntary contributio

Originally Posted by tht
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?
I sent payment April 23rd and mine doesn't show up yet. I phoned them last Friday to check and they said it just takes time - the international caseworkers are backlogged right now and they have to do the update manually. Told.me it could be another 2-3 months.
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