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Questions about NI Class 2 contributions

Questions about NI Class 2 contributions

Old Jun 19th 2016, 9:32 am
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Default Questions about NI Class 2 contributions

Hi all!

I was wondering if anyone could please help me.

I'm an expat and worked a total of 1 year in the UK after University, born and spent my whole life there in the UK until 2009 when I moved away, and still am currently an expat.

I've only 1-2 years of NI contributions from my job in the UK.

This year, I decided that I'd get in touch with HMRC to back pay NIC's and they have told me:

"As your national insurance account shows you were not regularly or ordinary employed before leaving the UK, you do not satisfy the condition to pay class 2 voluntary contributions."

Which, if according to the HMRC website, seems to be incorrect, I had one year working there.

The confusion I have here is according to the HMRC's site a person can pay class 2 voluntarily if:
- the person lived in the UK for a continuous three year period at any time before the period for which NI contributions are to be paid".

If I'm not mistaken, I think having paid a year's worth of NI contributions and THEN living abroad, I should be able to pay Class 2 NIC's for the previous years. Would anyone please confirm this for me?

Is it right in saying that I should have had 3 years working in the UK to be entitled to Class 2 NIC's?

Please let me know and I appreciate everyone's help with this in advance.
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Old Jun 19th 2016, 12:39 pm
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Default Re: Questions about NI Class 2 contributions

Originally Posted by majicka View Post
.... Is it right in saying that I should have had 3 years working in the UK to be entitled to Class 2 NIC's? .....
I believe that to be correct. Mrs P only worked in the UK for less than two years.
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Old Jun 19th 2016, 3:30 pm
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Default Re: Questions about NI Class 2 contributions

I don't know if this is relevant to your case but it used to be that if you had contributed (worked or signed on) immediately before moving abroad you could pay ongoing class 2 but if there was a gap you couldn't.
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Old Jun 20th 2016, 7:59 am
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Default Re: Questions about NI Class 2 contributions

Originally Posted by Asg123 View Post
I don't know if this is relevant to your case but it used to be that if you had contributed (worked or signed on) immediately before moving abroad you could pay ongoing class 2 but if there was a gap you couldn't.
Can anyone else confirm this? Too late to apply now?
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Old Jun 20th 2016, 10:14 am
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Default Re: Questions about NI Class 2 contributions

Originally Posted by majicka View Post
Can anyone else confirm this? Too late to apply now?
That is my understanding, but I don't see any harm in applying - they ask for your work/employment history and then you will be advised of your eligibility.
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Old Jun 20th 2016, 5:21 pm
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Default Re: Questions about NI Class 2 contributions

Originally Posted by majicka View Post
Can anyone else confirm this? Too late to apply now?
The bullet under the one you quoted from the NI document seems to rule you out unless you got credited years from jobs when you were a student:

"- before going abroad you paid a set amount in NICs for 3 years
or more (this will be checked when you ask to pay Class 2 NICs)"

So it's not an issue of being "too late" but of being ineligible.
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Old Jun 24th 2016, 11:02 pm
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Default Re: Questions about NI Class 2 contributions

Yeah in HMRC NI38 it says three years of NI contributions, I recall that.

Bit academic seeing as they're going to be abolished in 2018.
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Old Jun 24th 2016, 11:05 pm
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Default Re: Questions about NI Class 2 contributions

Originally Posted by Steve_ View Post
Yeah in HMRC NI38 it says three years of NI contributions, I recall that.

Bit academic seeing as they're going to be abolished in 2018.
It would be academic if the ability of non-residents to pay NI contributions is removed post-2018. But if some other arrangement is made - e.g. paying the more expensive Class I - then some will choose to continue making such contributions.
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Old Jun 24th 2016, 11:46 pm
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Default Re: Questions about NI Class 2 contributions

Well it will be Class 3 apparently but the guidance is so vague I can't understand it. I don't think the DWP understands it at this point.
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Old Jun 25th 2016, 2:08 am
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Default Re: Questions about NI Class 2 contributions

Originally Posted by Giantaxe View Post
It would be academic if the ability of non-residents to pay NI contributions is removed post-2018. But if some other arrangement is made - e.g. paying the more expensive Class I - then some will choose to continue making such contributions.
You can already make voluntary class 3 contributions if you don't meet the criteria to pay class 2 contributions.
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Old Jun 29th 2016, 12:54 am
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Default Re: Questions about NI Class 2 contributions

They don't seem to really know though, the guidance glosses over it.

I just don't think they care about telling us at this point because it doesn't matter yet. One would assume Class 2 ends in April 2018 and you have to do Class 3 after that, where it gets confusing though are the changes on how many qualifying years you have to have and if you go back and pay years you missed what the amount of the payment will be, what effect SERPS payments have on top of that, etc.

I expect a letter from HMRC ca. 2018 with some instructions.
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Old Jul 3rd 2016, 3:23 am
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Default Re: Questions about NI Class 2 contributions

Sorry to hijack, but related. I moved over in June 2004 but was still being paid out of UK payroll (inc. class 1 NICS) until Apr 2007 when my UK contract was replaced with a US contract. so the last year i paid class 1 was 06/07. I just received my NI record and its states for 07/08 i paid 52 class 3 NICs' (i've no idea so assume they are correct), then nothing until now. It then goes on to say i have 16 qualifying years to date (all of the one's prior to 07/08) and that to make up gaps since then i need to pay on average 700gbp per year of class 3 NICS. Which is now 6-7 years worth. Based on my situation (still in US permanent resident and full employed since 04) does my scenario provide a case to pay class 2 NICS for this period instead of class 3? and If so, how do i get HMRC to agree to this ? Thanks all.
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