Contributions to UK State Pension from the Isle of Man

sherringham2001

Hello, I am leaving the UK for the Isle of Man and I have read that I can still contribute to my UK State Pension. I currently have 20 years paid and on the website it says I can pay up to another 12 years, to make it 32 years.

Is it possible for me to work on the Isle of Man, pay into their state pension, while making a contribution to the UK state pension? If this is possible, how do I set this up, and do I pay once a year, or make monthly, or weekly payments? If more frequent payments are possible, is it better value to pay once a year, or more frequently?

Thanks in advance for your discussion with this.

Kind regards
Paul

Marcon

sherringham2001 said:

Hello, I am leaving the UK for the Isle of Man and I have read that I can still contribute to my UK State Pension. I currently have 20 years paid and on the website it says I can pay up to another 12 years, to make it 32 years.

Is it possible for me to work on the Isle of Man, pay into their state pension, while making a contribution to the UK state pension? If this is possible, how do I set this up, and do I pay once a year, or make monthly, or weekly payments? If more frequent payments are possible, is it better value to pay once a year, or more frequently?

Thanks in advance for your discussion with this.

Kind regards
Paul

See https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

nigelbb

If you will be working in the Isle of man you will be able to pay Class 2 NI contributions at about £160/year. It's all detailed in HMRC leaflet NI38 "Social Security abroad". https://www.gov.uk/government/publications/social-security-abroad-ni38

bostonerimus

Yep just read "NI38" leaflet, all the information is in there. FYI if you do qualify to pay voluntary NI, HMRC will send you an annual bill and you can either write them a cheque or do an electronic transfer to their account. I've been doing it since 1987 with no problems.

nigelbb

bostonerimus said:

Yep just read "NI38" leaflet, all the information is in there. FYI if you do qualify to pay voluntary NI, HMRC will send you an annual bill and you can either write them a cheque or do an electronic transfer to their account. I've been doing it since 1987 with no problems.

There is a form at the back of NI38 that allows you to set up a Direct Debit from a UK bank account to pay for your voluntary NI contributions either monthly, six monthly or annually.

sherringham2001

Thank you everyone for letting me know. How long after the tax year has ended do you have to make voluntary contributions for that tax year?

nigelbb

sherringham2001 said:

Thank you everyone for letting me know. How long after the tax year has ended do you have to make voluntary contributions for that tax year?

In general it's up to six years.

sherringham2001

Thanks for letting me know everyone. If I get up to six years to contribute for a year, could I wait that time to contribute for the same price? Or should I pay earlier? What I mean is, is it cheaper to pay sooner, or the same price, as long as I pay in the six years?

jem16

sherringham2001 said:

Thanks for letting me know everyone. If I get up to six years to contribute for a year, could I wait that time to contribute for the same price? Or should I pay earlier? What I mean is, is it cheaper to pay sooner, or the same price, as long as I pay in the six years?

The price for each year is held at the original price for two years after that tax year has ended. After that the price rises to whatever the price is for the current tax year. So it is cheaper to pay within those two years. 

AnnieB2018

Just out of curiosity - so for the 6 years after moving to IOM you can buy NI credits in the UK while also paying tax on IOM and accruing 6 years of NI credit there too? I get that you are paying twice but this double dipping sounds a bit of an oversight from the HMRC 🙈!

molerat

AnnieB2018 said:

Just out of curiosity - so for the 6 years after moving to IOM you can buy NI credits in the UK while also paying tax on IOM and accruing 6 years of NI credit there too? I get that you are paying twice but this double dipping sounds a bit of an oversight from the HMRC 🙈!

2 separate state pensions, the same as when living anywhere else in the world.

I agree that it is something that should not be allowed, at least not through class 2 contributions.