scot47

You need to apply for permission to pay NI Contributions when overseas. I understand that in their jargon you have to "have entered insurance" prior to leaving the UK.


I think that they will not look too closely at what you are actually doing, but clearly someone has pointed out that Class 2 Nat Ins was ridiculously cheap. Do the math for yourselves.


I believe you can pay arrears for a period of 7 years.

mrken30

I had to call HMRC today about voluntary contributions and they informed me that they are now able to go back further. There has been some recent legislation change. This does not affect me, but if you were limited by how far you could go back it may be worth looking again. Also the rates now are lock for a few years.

dossier

Thanks for all of this. So after the abolition of Voluntary Class 2 in April 2018, does that mean those working outside of the UK can only pay voluntary class 3 NI contributions (i.e. at the much higher rate) after April 2018?

Pulaski

AFAIK, yes.

dossier

Is there any to mitigate this? Or is it a case of "it is what it is"?

dossier

I called up the HMRC helpline to ask about Voluntary Class 2 Contributions, and was told that whilst Class 2 is being abolished for the self-employed in April 2018, this did not (yet) officially apply to those employed overseas making Voluntary Class 2 contributions.

Or has the guidance not yet reached the HMRC on overseas Voluntary Class 2 contributions? (I suppose there is still 1.5 years left for it to "filter down" to the HMRC frontline staff)

Steve_

Having read the guidance, I can't understand it myself. My plan is to leave it a few more months then call them.

mrken30

This may be useful information in a few months

Contact details for the International Caseworker Team, who can answer queries on National Insurance status and entitlements, pension status or forecasts and health care issues, if you are under State Pension age and live or work abroad

Phone: National Insurance Helpline for non-UK residents - 0300 200 3506 / Calling from outside the UK - +44 191 203 7010
Opening hours:

From 8.30 am to 5.00 pm, Monday to Friday

https://www.nidirect.gov.uk/contacts...-casework-team

dossier

Thanks. I will work on the basis that Class 2 Voluntary NI contributions whilst working abroad will be eliminated in April 2018, and all that remains is to pay at the Class 3 Voluntary NI rate after that.

thinbrit

I missed that they had changed bank accounts for class II wire transfers. I always send a copy of the wire and ask for a written receipt. This year I was told they had not received payment and could not find my wire. They helpfully asked me if I had used their new bank account. It seems my money disappeared in to the either in their old account. I had to send another wire payment.

I'll keep paying until they say stop. Hopefully my payments will still be used in calculating any pension I'm due up until that time.

Steve_

The only problem with that idea is that they're taking the view that you should carry on paying until you claim, because then you can claim all your benefits when you move back to the UK. Slight snag is, you don't want to move back to the UK! So you have to keep an eye on how many years you've contributed for.

You can however check on-line: https://www.tax.service.gov.uk/check-your-state-pension

dossier

It is quite worrying that, when dealing with Voluntary NI contributions with NIC & EO at the HMRC, there are a lot of stories of where money paid to HMRC simply "disappears" into the wrong account or the wrong tax year! My only suggestion is be extra cautious with HMRC NIC voluntary payments.

mrken30

I pay mine through direct debit, a bit less to worry about. Just comes out every month and I can check my statements.

iceflow

Folks,
Is there a 101- Class 2 for dummies on the site so I can make some basic judgments as to whether we should apply for my wife under the Class 2 system, albeit I see it will be phased out in 2018.
What I think I'm seeing is that you had to have been employed in the UK right up until you left the country to be considered for Class 2. If that's the case then we'll be topping up the coffers under the Class 3 as she stopped working several years before we left the UK to do more work bringing up our son.


Thanks

Pulaski

The rules seem somewhat elastic - I haven't seen much consistency, and child-rearing could be within the rules. The best recommendation is always to apply for Class 2 as there is no downside, then spin your answers as well as you can without lying, and see what decision you get. Bear in mind that your application will be verified, potentially including contacting previous employers.

One forum regular reported having been unemployed for a period before he left the UK and was still approved for Class 2 contributions.