Class 2 NI not being Axed at April 2019

drumtochty

Send them a letter with a cheque and on the letter say somthing like.


NI Number TY674573C or whatever

Tax Year 2017 2018
Cheque enclosed for £xxx and the rate for Class 2 NI 2017 2018 was £2.85 a week.
Write your NI number on the back of the cheque

lisboa84

I have around 12 years of gaps in my record, and I have a statement from HMRC showing the amounts of each year owed, but I don't have a reference number for a single lump sum payment.

It's a bit unorthodox but instead of making one large lump sum payment, I think I may make 12 separate online payments, one for each year, and in the reference box and I'll write my national insurance number/NIC/tax year.

I'll then call them a few days later to confirm they have received my payments and make sure they're on course towards allocating the funds.

I'll report back here to let other folks know how I get on.

By the way I don't have a cheque book and I don't trust the postal system!

I noticed that if you pay NIC's online from abroad, even if you're paying from a UK account, you pay into a HMRC Barclays account, but if you're paying from within the UK, you pay into a HMRC Co-Op account.

Just curious; any idea why HMRC use two different banks for receiving payments for the same thing?

jahwobble

Has anyone noticed this note at the bottom of non-resident HRMC emails?


"If you return to work in the UK, you may become liable to pay compulsory UK NICs if you become employed or self-employed before you reach State Pension age regardless of the number of qualifying years you have already achieved for State Pension purposes."



!!!!!

molerat

jahwobble wrote: »

Has anyone noticed this note at the bottom of non-resident HRMC emails?


"If you return to work in the UK, you may become liable to pay compulsory UK NICs if you become employed or self-employed before you reach State Pension age regardless of the number of qualifying years you have already achieved for State Pension purposes."



!!!!!

What is wrong with that ? When working in the UK you are liable for compulsory NI deductions if below SP age, how many years you have already contributed is of no relevance. The same rules apply to everyone.

redux

jahwobble wrote: »

Has anyone noticed this note at the bottom of non-resident HRMC emails?


"If you return to work in the UK, you may become liable to pay compulsory UK NICs if you become employed or self-employed before you reach State Pension age regardless of the number of qualifying years you have already achieved for State Pension purposes."



!!!!!

Seems fair enough, on initial view.

Although there is a defined minimum number of years contributions that qualify for a full state pension, nobody is entitled to discontinue further contributions if still earning over the threshold once they've reached that number.

If you anticipate coming home.later and adding a few years working, you could consider discontinuing voluntary contributions now.

Can voluntary contributions be retrospectively reclaimed for a certain number of recent years? I don't know, but it might be interesting.

Voyager2002

redux wrote: »

Can voluntary contributions be retrospectively reclaimed for a certain number of recent years? I don't know, but it might be interesting.

No, never.


Once you have paid a voluntary contribution that is it, no refunds. They are even firmer on this point than are Ryanair!

molerat

There have been cases of contributions being reclaimed but that has been where the payer has been misled into paying them to increase their state pension but there was no possibility that those contributions could have done so.

lisboa84

Yes just think of it as if you return to the UK, your NIC are going towards the NHS that you or your family are likely to use at some point.

The only time I've heard about voluntary contributions being refunded are when people, who were contracted out at some point in their working lives, had paid voluntary contributions for pre 2016 years in which they mistakenly assumed would increase their state pension, which it did not.

jahwobble

Thank you all for your comments. My situation is this:
I'm 51. left the UK in 2003 with 21 years of full NICs. (I was contracted out at some point) I didn't pay any NICs after that year until 2017 when I contacted HMRC/DWP. In 2018 they agreed I could pay voluntary Class 2 NICs at the low rate to fill the gaps in my NI record. They gave me a payment schedule and I have paid 3 missing years so far. Each of those year's payments has appeared on my online State Pension statement as being "paid in full".
So, referring back to the footnote I posted earlier - if I return to the UK and start working before my retirement date I will lose those 3 years voluntary NICs (and any future ones I might pay until I return) and fall back to having just 21 years full NICs? Or will I lose everything (including the 21 years) and start from scratch?
If I do not return and work in the UK ever then I keep the 21 years and can continuing filling the gaps and paying Class 2 NICs until I reach 67 and claim my full state pension from abroad?

molerat

You won't lose anything. If you return you will not be eligible to pay class 2 unless self employed, you will either pay class 3 voluntary or class 1 through employment. If you remain abroad you will be able to pay class 2 as long as you are employed.