Class 2 / Class 3 payment sanity check

watervolume

I am based abroad and according to the forecast I need to contribute another 15 years before April 2040 to get the full state pension.

I had submitted a CF83 form last year to apply for Class 2 contributions. I called up HMRC today and I was told that more than 2 weeks ago, they had sent me a letter with a list of tax years I could pay for but I've not received it yet. Fearing that the payment deadline might have passed by the time I receive the letter, I got that list over the phone, as follows:

07/08 - class 2: £163.80
08/09 - class 2: £110.25, class 3: £269.45
09/10 - class 2: £163.80
10/11 - class 2: £129.15, class 3: £174.35
16/17 - class 2: £163.80
17/18 - class 2: £163.80
18/19 - class 2: £163.80
19/20 - class 2: £166.95
20/21 - class 2: £163.80
21/22 - class 2: £158.60
22/23 - class 2: £163.80
23/24 - class 2: £179.40
24/25 - class 2: £179.40

For some reason, I was quoted amounts for both class 2 and class 3 for the tax years of 08/09 and 10/11. When I asked about them, I was told I needed to pay both Class 2 and Class 3 for those years. I am to make one bank transfer for the Class 2 contributions and another bank transfer for the Class 3 contributions.

I've not heard about this scenario where both classes are paid for the same tax year before. Does anyone know if that is normal?

Thanks in advance.

Suhusa

Were you unemployed in parts of those years? Class 2 can only be paid for period when you were in employment.

watervolume

Suhusa said:

Were you unemployed in parts of those years? Class 2 can only be paid for period when you were in employment.

Ah yes, that all makes sense now. Thank you.

Given that I still have quite a few years before 2040, I'll skip paying voluntary NI for those 2 more expensive tax years.

pinnks

That would make sense, as long as the future price for the Class 2 years won't exceed what you would pay for a mixed year.  In your case that seems unlikely, so as long as future years are expected to be at Class 2, then focusing on them sounds sensible.

watervolume

Does anyone know the process for paying voluntary NI for subsequent years?

Would I need to submit a new CF83 form every few years to apply for Class 2 contributions?

Suhusa

No, doing it once is enough. Either you set up a direct debit, or you get a bill twice a year.

jem16

Suhusa said:

No, doing it once is enough. Either you set up a direct debit, or you get a bill twice a year.

Or you get an annual bill at the end of each tax year. Direct debits can only be set up from a UK bank account. 

pinnks

watervolume said:

Does anyone know the process for paying voluntary NI for subsequent years?

Would I need to submit a new CF83 form every few years to apply for Class 2 contributions?

If you asked to pay future years on your original application then you'll get an annual bill but if not you will have to submit another CF83.  People are saying that it has to be on paper as the online system will not allow you to opt for that.  Perhaps use the HMRC Digital Assistant to check.
 

watervolume

watervolume said:

Given that I still have quite a few years before 2040, I'll skip paying voluntary NI for those 2 more expensive tax years.

I totally jinxed it, didn't I?!

https://www.gov.uk/government/publications/changes-to-voluntary-national-insurance-contributions-for-periods-spent-abroad/voluntary-national-insurance-contributions-for-periods-abroad-from-april-2026