Foreign employer not paying NI

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
4 replies 760 views
DUSDUS Forumite
184 Posts
Hi,

I am employed by an Austrian company which has no legal entity here in the UK.

This week, I realised that they do not have to make NI contributions. Well, I have of course. :rolleyes: My question is: With only me paying NOI, does this have an adverse effect on my state pension or is it immaterial that there is no UK employer paying NI?
Any other negative effects that I should be aware of?

Thank you for letting me know your thoughts on this.

Cheers,
DUS

Replies

  • mlutonmluton Forumite
    747 Posts
    Part of the Furniture 500 Posts
    ✭✭
    IIRC at the end of the tax year they will send you a letter stating your missed NI amount for the year and arrange payment to be made by either payment in full or take the amount bit by bit till your retirement age.

    OH had this afterworking abroad for 3 years before we met. She arranged they take it bit by bit over the years prior to retiring.
  • DUSDUS Forumite
    184 Posts
    Sorry, I might not have been specific enough in my previous post. What I wanted to say is that I currently pay NI (my taxes, NI etc, this is all taken care of by UK based service company Compupaye) but only my employer doesn´t pay NI because he doesn´t have to according to UK tax laws.

    My question is, if the fact that only I pay (but not my employer) will reduce the state pension or has any other negative effects on other benefits, that I should be aware of.

    Even with the state pension not making anyone rich, I think its still worth having. :-)

    Cheers,
    DUS
  • Cook_CountyCook_County Forumite
    3.1K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    Your Class 1 contributions buy hypothecated benefits. The employer contributions - if any - are a pure tax and buy no benefits at all.
  • DUSDUS Forumite
    184 Posts
    Your Class 1 contributions buy hypothecated benefits. The employer contributions - if any - are a pure tax and buy no benefits at all.

    Thx for clarifying this!

    DUS
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