Becker12

Hello.
I've recently been approved by HMRC to pay NIC class 2 contributions since I'm currently employed.

My question is, if I become unemployed for a period of time, do I lose the right to pay NIC Class 2 and can only pay NIC Class 3 and if so do I regain the right to pay NIC class 2 in future period(s) once I'm (hopefully) employed again?

Does anyone know and/or went through this?

Thanks in advance

nun

Here are the answers to your questions

http://www.hmrc.gov.uk/ni/volcontr/abroad.htm

If you were to be out of work for a short period of time I probably wouldn't worry about it. In all the 25 years I've paid voluntary NIC HMRC have never checked my employment. If it looks like you will be unemployed for an extended period I'd contact HMRC and ask.

robin1234

I've just gone through this process for myself, and in September sent HMRC a check for the years 2005-6 to 2010-11. It all went without a hitch, so my wife also went through the process of applying to pay the Class 2 NIC. Her letter came the other day, they accepted her application too, so I'm just now (being a rainy day!) writing her cover letter and will write out a check.

Weird thing is, the amounts quoted for the years are different in one case. For mine, they quoted £130.00 for 2006-7, but for her they are quoting £109.20 for that same year. The other five years are the same in both our quotes. Could they have made a mistake, or is there a rhyme/reason?

Giantaxe

To pay back contributions I was asked for a list of my employers in the US during that period. I don't see how they could have plausibly have checked its accuracy though.

Becker12

Thanks Nun and Giantaxe. Your experience and insight are useful.

Actually, I'm familiar with the NI link Nun had kindly provided and based on it I requested and got the approval for paying Class II.

The rules though seem a bit odd to me. For example, the prospect of someone paying years of NI Class 2 Vs. Class 3 (the difference now being something like £500 annually) all seem to depend if he/she were employed in the UK immediately prior to leaving abroad. So basically, many years of potential future NI contributions abroad all depend on the period of the few months before leaving the UK??

My wife, for example, was not approved Class 2 because she was not immediately employed before leaving the UK.

I’m just thinking aloud if there aren’t any other odd rules I’m not aware of, like if you’re unemployed (for any length of time) you have switch to Class 3 and may never regain the right to pay class 2 again.

I get what you’re saying about HMRC not being able to really verify if one was employed or unemployed but still want to understand what the formal rules if there are any.

For example, in the letter I got from HMRC approving my NIC Class 2 status they state: If your employment circumstances change, please let us know immediately and we will advise you further

Steve_

The main thing to do is to check with DWP to see how many more years you've got to do to get to 30 years, strangely HMRC actually told me to do this in the last correspondence I got from them, which seemed odd as it would encourage you not to give them money.

But I agree with the previous poster, I've been doing it for years now and they've never checked my employment, they ask on the application form and that appears to be it.