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Question about paying NI contributions whilst in USA

Question about paying NI contributions whilst in USA

Old Apr 12th 2007, 9:20 pm
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Default Question about paying NI contributions whilst in USA

I'm looking into re-contributing to my national insurance whilst I live in the USA, I'm reading through leaflet S33 which describes the social security agreement between the UK and USA and have come across this:-

"If you are abroad and do not have to pay UK Class 1 or Class 2 contributions, you may wish to think about paying UK
voluntary contributions. "

Yep, that's me and yep I am thinking about paying voluntary contributions.

"Leaflet NI38,
Social security abroad, tells you about this. However, you may have to pay US contributions too."

Are they talking about Social Security here? Because yep, I'm paying that.

"If you are trying to decide if it is worthwhile paying UK voluntary contributions as well, see the sections on Incapacity Benefit (page 11),
State Pension (page 13) and Bereavement benefits and widows’
benefits (page 14) before you decide. Please note that the payment of voluntary contributions cannot be made to both schemes for the same period. You may only contribute voluntarily to one scheme at a time."

Does this mean that if I am paying into Social Security in the USA, I cannot make voluntary contributions to my NI in the UK?

I'm understanding most of the leaflet, I think, but I'm not great at reading info like this, the words tend to swirl around and merge into one, any help here from the experienced would be greatly appreciated.

Last edited by Leeds_Lass; Apr 12th 2007 at 9:20 pm. Reason: Not sure which forum this belongs in, sorry mods!
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Old Apr 12th 2007, 9:52 pm
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Default Re: Question about paying NI contributions whilst in USA

you can make the contributions to NI...but only if you've been working in the UK for 3 years before leaving the UK.
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Old Apr 12th 2007, 9:57 pm
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Default Re: Question about paying NI contributions whilst in USA

Bob - I worked in the UK for 12+ years before I left the UK, so I should be ok to pay into NI.

Thanks for responding, I wonder what they are talking about here then :-

"Please note that the payment of voluntary contributions cannot be made to both schemes for the same period. You may only contribute voluntarily to one scheme at a time"
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Old Apr 12th 2007, 11:28 pm
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Default Re: Question about paying NI contributions whilst in USA

Originally Posted by Bob View Post
you can make the contributions to NI...but only if you've been working in the UK for 3 years before leaving the UK.
3 years continuous UK residence also qualifies you.

Also make sure you pay Class 2 contributions as you get more benefits than with Class 3 and they are actually cheaper than Class 3.....yes you read it right!
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Old Apr 12th 2007, 11:47 pm
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Default Re: Question about paying NI contributions whilst in USA

you can certainly make the contributions even if paying social security here - the question is - is it worth it? the answer - probably not!
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Old Apr 12th 2007, 11:58 pm
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Default Re: Question about paying NI contributions whilst in USA

Originally Posted by Big D View Post
you can certainly make the contributions even if paying social security here - the question is - is it worth it? the answer - probably not!
Having spoken to several accountants on this that certainly seems to be the case.
Plus I think if you are working in the US then move back to the UK you can claim offsetting to make up for the UK payments you missed.
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Old Apr 13th 2007, 12:00 am
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Default Re: Question about paying NI contributions whilst in USA

Fill in this and send it off ..to get a Pension forecast and detail of payments that can be made

http://www.hmrc.gov.uk/pdfs/ca3638.pdf
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Old Apr 13th 2007, 1:36 pm
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Default Re: Question about paying NI contributions whilst in USA

Big D and BigDavyG - why would it not be worth it paying in?

Ray - thank you for the link to the form.
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Old Apr 13th 2007, 1:40 pm
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Default Re: Question about paying NI contributions whilst in USA

Originally Posted by Leeds_Lass View Post
Big D and BigDavyG - why would it not be worth it paying in?
Ray - thank you for the link to the form.
I sent off one a week or two back ...
awaiting response myself
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Old Apr 13th 2007, 3:17 pm
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Default Re: Question about paying NI contributions whilst in USA

Originally Posted by BigDavyG View Post
Having spoken to several accountants on this that certainly seems to be the case.
Plus I think if you are working in the US then move back to the UK you can claim offsetting to make up for the UK payments you missed.
I have paid 20 years of voluntary NI contributions,most of them at Class 2 level. This cost me only GBP 109 last year. I also pay US FICA so when I retire I'll be eligible for both US and UK state pensionsalthough the exact amounts will have to take into account the US windfall elimination regulations. Still at GBP 100 per year Class 2 NI is a great deal.
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