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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?

Old Jun 12th 2024, 4:21 am
  #871  
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

If you qualify for the maximum state pension with 31 years contributions then you have a SERPs (or S2P) entitlement of about £25 which could easily have been built up over the time period you mentioned if you were a higher earner.
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Old Jun 15th 2024, 2:38 am
  #872  
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

Originally Posted by Glasgow Girl
If you qualify for the maximum state pension without working the full 35 years it’s safe to say that you did earn SERPs. They won’t notify you if that on any forecast.
There you go then; another day, another thing I learned.

Thanks!
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Old Jul 9th 2024, 11:29 am
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

Can someone advise whether I should be eligible to pay Class 2 NI contributions rather than the class 3 that the NI folks offered me?

"To pay Class 2 or Class 3 voluntary contributions you must have either:
  • previously lived in the UK for 3 years in a row
  • paid contributions or had Class 2 contributions treated as having been paid for at least 3 years
To pay Class 2 voluntary contributions both of the following must also apply:
  • you worked in the UK immediately before leaving
  • you’re currently working abroad (or you worked while you were abroad)"

As far as I can see I meet the criteria in that I have worked abroad for a number of years, after paying NI for 18 consecutive years in the UK. I have made some back payments to increase my pension (all at the Class 3 rate they requested) but now I see that I potentially should have been paying at the class 2 rate? As I think about topping up to the 35 years I am hoping that it could be at the lower Class 2 rate going forward.

Also are there any differences or disadvantages to me if I only paid the Class 2 rate ?

Thanks
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Old Jul 9th 2024, 4:26 pm
  #874  
 
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

Originally Posted by reltub
..... Also are there any differences or disadvantages to me if I only paid the Class 2 rate? ....
There is zero difference in the payout amount of a pension whether you paid in based on employment deductions, the Class 2 rate or the Class 3 rate, the amount is exactly the same, nor is there any other difference.

As I have noted many times on this thread, the Class 3 rate is the default rate, and to get the Class 2 rate you have to request, apply for (complete a basic form, which I think I heard can be done on line these days), and be approved.
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Old Jul 9th 2024, 11:20 pm
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

Originally Posted by Pulaski
There is zero difference in the payout amount of a pension whether you paid in based on employment deductions, the Class 2 rate or the Class 3 rate, the amount is exactly the same, nor is there any other difference.

As I have noted many times on this thread, the Class 3 rate is the default rate, and to get the Class 2 rate you have to request, apply for (complete a basic form, which I think I heard can be done on line these days), and be approved.
You can indeed apply online: https://www.gov.uk/guidance/apply-to...en-abroad-cf83
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Old Jul 13th 2024, 5:35 am
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

Thanks Pulaski and MidAtlantic - I have completed the form online and will wait to see the outcome.
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Old Jul 14th 2024, 5:30 am
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Default Re: Class 2 NI. What about us poor expats paying voluntary contributions?

The class 2 application is well worth the effort.
The approval process takes a few weeks. I submitted the online form on 6 March and received the response from HMRC in a letter dated 24 May, which arrived early June.

That's quite quick for a government department.

Hope you get a positive response.

Andy
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