Any Brit expats?

magicgenie

Couple of NI questions, for those paying:

1. Do you pay Voluntary Class 3 contributions or Voluntary Class 2?
2. What's the difference?
3. How much are both?

Alex

CIS

Class 2 is the S/Employed rate and class 3 the voluntary rate, effectivey they have no differnce (except price and liability to pay)

The difference between the conts is around £5.00 or so per week, but the rules on what you can pay vary depending on the country.

The various rules are covered here
http://www.hmrc.gov.uk/manuals/nimmanual/nim33600.htm

EdInvestor

People employed overseas can now pay the cheaper rates, even if they are full time employees, AFAIK.There is effectively no difference in the benefits.

Cook_County

But do NOT pay now because there is legislation pending on precisely this issue!
http://www.hmrc.gov.uk/nic/vc3-important.htm

magicgenie

http://www.hmrc.gov.uk/nic/vc3-important.htm

Well, if that isn't the most confusing few paragraphs I ever read, lol!

I'm 37 y/o, looks to me like I should pay the lesser Level 3 v rate. Thanks everyone.
Alex

magicgenie

Hang on... Seems like level 2 is the way to go, do you agree?

<Thank you for contacting the Centre for Non-Residents.
Voluntary Class 3 contributions are now £7.55 a week and provide cover
for Retirement Pension and Bereavement Benefit. Both benefits are
payable abroad.
Voluntary Class 2 contributions are now £2.10 a week and provide the
same cover as Class 3 contributions, with additional cover for
Incapacity Benefit and Maternity Benefit. These additional benefits can
only be claimed if you are in the United Kingdom (UK).
To pay voluntary Class 2 contributions you must have been normally
employed or self employed or normally employed but unemployed
immediately before leaving the UK and be employed or self employed
abroad.>

nigelF

Hi Alex, I've been on this board a while ago (moving to Madeira in January and I'll be self-employed) and was recommended Class 2. I've just talked to the Self-employment dept at the IR (0845 915 4655) and they've told me that I cannot pay voluntary Class 2 if I'm in another country for more than 6 months - you would then be classed as a resident. Then you HAVE to pay voluntary Class 3!
Maybe someone can recommend a better way of spending £393 a year with a better return.

EdInvestor

To pay voluntary Class 2 contributions you must have been normally employed or self employed or normally employed but unemployed immediately before leaving the UK and be employed or self employed abroad.

THe CNR are correct - they are the people you pay the money to, after all The only expats who have to pay the more expensive Class 3 contribtions are unemployed ones ( eg spouses).

But if you already have paid 30 years or more I would hold off, as the likelihood is you won't have to pay any more.

nigelF

Hi EdInvestor

Sorry I'm jumping in on Alex's thread here, but are you telling me that the nice people at the IR are spinning me a yarn? They said I could pay class 2 for up to six months, but any longer would make me a resident and I would then have to pay class 3 to qualify.

Maybe I should start paying class 2 and hope that the white paper comes into effect and saves me a heap of cash. (Although it doesn't help Alex much).

seven-day-weekend

AFAIK you can only pay Class 2 if you are self-employed (and can prove it) in your country of residence.

I do not have a job here in Spain and paid a year's worth of Class 3 contributions. I then stopped paying as I only needed to do one more year to qualify for full pension, and thought I would do it later.....but maybe I won't have to now!

My husband is on Incapacity Benefit and he gets his contributions credited.

Some friends of mine who are classed as self-employed here in Spain have been paying Class Two contributions for three years.

Hope this helps.

seven-day-weekend

seven-day-weekend wrote:

I do not have a job here in Spain and paid a year's worth of Class 3 contributions. I then stopped paying as I only needed to do one more year to qualify for full pension, and thought I would do it later.....but maybe I won't have to now!

.

Just read the article again....I will have to pay my extra year as the new rules only apply to people reaching retirement age after 6 April, 2010. My retirement age is 27 January 2010. (However, this means I can still claim my pension at 60).:T

It will apply to my husband however, if his IB finishes. He has 37 qualifying years up to April 5, 2005.:T