Cincyscot55

Apologies for any repeat but I'm going round in circles as thanks to this forum I've just realized I need action on NIC contributions. My wife and I are UK nationals but now permanent residents in US. All we want to do is make enough contributions to obtain qualifying years for UK pension. Questions are
- I'm employed in US so do I pay Class 3
- Wife is not employed can she pay class 3
- When trying to pay back years what rate should we pay at as HMGov website says rates go up as years pass. So for example if we are trying to pay tax year 2010 what are weekly rates (or where can we find these)
- Do you just send a letter and check outlining what years you are catching up on (I know go forward we can use direct debit)

Thank you all in advance

dunroving

Take a look at Post #2 and Post #10 in this similar thread.

Cincyscot55

Thanks and believe me I have researched this. I have also tried calling the number about 15 times in last three days but always busy. I was just hoping there were some simple ways to action this myself. Thanks.

dunroving

Hmmm, that's interesting - I called that number twice a few days ago and after listening to various voice recordings, push this button, push that but, I eventually got to the end when they said (recorded" "We're too busy to deal with your query right now, call back at another time", and the line was hung up! [I had a good grumble about it in another thread somewhere]

I wonder if other people are having the same problem. The system doesn't even give you an option to hold!

Did you try emailing them?

I do think the Web site has a list of how much it costs for each year. Class II is pennies (about £100 per year) and essentially Class III is about £600 per year, just as a ballpark figure for now.

Assuming you don't end up with more years than you need, I think you make back your Class II contributions a few months after you retire and Class III contributions by about 4-5 years post-retirement, so both are worth it.

[Edited to add - if you are employed in the US, you will pay Class II. That's explained in a lot of the many threads on the topic. I think your wife would pay Class III - but this also is covered numerous times in other threads so take a look to be sure. However, if you are making back-payments, I think these have to be Class III. I posted a thread about this on the MBTTUK forum a few days ago.]

Hotscot

You can also write to them and they will respond with details on what you need to do.

durham_lad

When I started catch-up contributions a couple of years ago I confess that I went low tech and wrote to them, using snail mail.

dunroving

Did you back-pay any years and if so, were they Class II or Class III? I have been trying to get a definitive answer to that for some time (from someone who has actually gone through this - the HMRC documentation is a little ambiguous).

durham_lad

I paid 7 years back contributions, class 3, and continue to pay class 3. I have been retired since 2010 so am not employed or self employed, and there had been a 20 year gap since I last paid NI. (They sent me my contribution record showing that I had 13 years worth of contributions, so I am now up to 21 years)

Cincyscot55

Did they notify you of amount to be paid for each back year or did you find this on website - thanks

dunroving

Ah, OK, sorry to keep asking but the years you back paid for, were you employed in the US during that time, or otherwise?

The information I have been trying to get at is the following:

While working in the US, one is eligible to pay Class II NICs.

If you end up with a NI gap from that period, you can make up ("back-pay" those years). However, I am not clear on whether this then must be Class III.

I'm beginning to think the answer is "Yes, tough luck" (I have posted on this elsewhere) but HMRC don't state this unambiguously. By omission, therefore, I am now thinking that all/any back-paid years must be Class III, regardless of what class you would have paid at the time.

Giantaxe

I paid six years of back contributions with Class II. I was employed for all of those six years. An absolute bargain!

dunroving

How long ago was this? I am trying to appeal to HMRC because when I got my NI statement/pension forecast it identified the years I was working overseas and said I could back-pay them Class III. At the time I really couldn't afford it (but would have paid Class II if they'd said I could back-pay via Class II).

With many of these things it seems if you are a big enough pain, HMRC will yield, but I'm thinking they are more obstinate than me on this one ...

Giantaxe

2010.

dunroving

Thanks, you just gave me the motivation to keep trying.

durham_lad

I suppose, of the 7 back years I paid 3 could have been working, but since I hadn't paid into the system for 20 years I was just pleased to be able to make any back payments at all. I didn't argue a case for paying any class 2, so what I ended up doing was possibly not the best deal.