Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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.

Re: Gap in NIC contributions
 

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.]

Re: Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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.

Re: Gap in NIC contributions
 

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).

Re: Gap in NIC contributions
 

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)

Re: Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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. :(

Re: Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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 ...

Re: Gap in NIC contributions
 

2010.

Re: Gap in NIC contributions
 

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

Re: Gap in NIC contributions
 

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.

Re: Gap in NIC contributions
 

Not sure about the wife, I think that is only class 3 if not working, I wrote to Newcastle they then had me fill out NI38 http://search2.hmrc.gov.uk/kb5/hmrc/...xY&formId=3297

Which I mailed in about two months later they later mailed me to say they have accepted my application to pay Class 2 contributions.

They said they will write to me at the time with payment instructions and said I would be able to make up to 6 years payments, I had always assumed the 6 years would have been class 2, I should find out shortly.

Re: Gap in NIC contributions
 

Please post back when you find out. :)

[ETA: I just had a quick scan of the form and it brings back memories - the HMRC site links to this in places where it says click here to find out about making voluntary payments for periods when you are or if you were working abroad - but the wording throughout the form is to do with where you are, or will be, working. That was the original source of ambiguity which I have been unable to get to the bottom of - so I am particularly interested to hear back what they tell you about your past years.]

Re: Gap in NIC contributions
 

So I pulled the letter out to check what is says.

"We have accepted your application to pay voluntary Class 2 NICs by yearly payment. We will sent yo a letter shortly after 5 April 2014 to tell you how much to pay for the 2013/14 tax year. You can only pay voluntary Class 2 NICs using the yearly payment method for complete tax years spend abroad."

For my circumstances I currently have 16 qualifying years and I am still 21 years away from retirement, the letter tells me that up to 5 April 2019 I can pay for tax years 2006/07 through 2012/13 without penalty.

So basically £137.80 (2 years slight different amount) a year for the last 7 years is what I can pay if I so choose.

It also says this

"If your employment circumstances change, please let us know immediately."

Re: Gap in NIC contributions
 

Cool, thanks for the update.

Re: Gap in NIC contributions
 

I have paid total of 19 yrs voluntary payments, both Class 2 and 3.

Re: Gap in NIC contributions
 

Were any of the Class II's retrospective (back-paid years)?

Re: Gap in NIC contributions
 

I have a quick question, but posting in this thread seems the best option, instead of creating a new one.

My background is that I came to the US in October 2012 on an L1-B visa. I'm living in Houston (well, Cypress strictly), with my USC wife and stepchildren. I had 15 years of continuous employment in the UK before moving, and I've been employed since arriving in the US. I will be getting my green card before my visa expires, and I don't plan to return to the UK any time soon. I've therefore just pulled together a letter to HMRC asking to pay Class 2 voluntary NICs, including arrears from the day I entered the US.

What I haven't been able to find out is what documentation HMRC require as evidence. I plan to attach:
- NI38 form
- Offer of employment letter in USA
- First US payslip
- 2012 W2
- 2013 W2
- Marriage certificate (as evidence that I'm not ordinarily resident in UK)

Am I missing anything obvious?

Thanks for your help.

Re: Gap in NIC contributions
 

That sounds very comprehensive. When I applied to pay voluntary NI 27 years ago I think I just filed NI38 and they took my word that I had a job in the US. If you haven't done so already you should file a P85 so HMRC officially knows your non-resident status.

http://www.hmrc.gov.uk/cnr/p85.pdf

Re: Gap in NIC contributions
 

Yes, thanks. I did that last year and the taxman gave me a few thousand back, which was nice.

Re: Gap in NIC contributions
 

Yes, they allowed me to back-pay several years of Class II NI payments.