Class 2 or Class 3 Voluntary NI contributions

Hey guys,

I left the UK several years ago and now have an NT tax code. I ma 5 years off full UK state pension age and I have the option to voluntarily buy some NI credits. I don't have a regular job in the US but file taxes; I have income from property rentals and investments.

Would I be paying Class 2 or Class 3 voluntary contributions? I will be WEPed to the max so I reckon I might as well maximize my UK Pension.

Thanks

A

Hey guys,

I left the UK several years ago and now have an NT tax code. I ma 5 years off full UK state pension age and I have the option to voluntarily buy some NI credits. I don't have a regular job in the US but file taxes; I have income from property rentals and investments.

Would I be paying Class 2 or Class 3 voluntary contributions? I will be WEPed to the max so I reckon I might as well maximize my UK Pension.

Thanks

A

-Living and working abroad   Class 2 - but only if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for at least 3 years in a row or paid at least 3 years of contributions

-Living abroad but not working   Class 3 - but only if at some point you’ve lived in the UK for at least 3 years in a row or paid at least 3 years of contributions

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

I am working in the US (since 2001) and my wife has retired although not drawing a pension yet.  I am able to make Class 2 NI contributions and she makes the higher cost Class 3 contributions.  Back in 2018, because we were missing NI contributions, we each made a single payment to cover the years 2006-2018 and so now are eligible for a much larger UK state pension.  Definitely worth doing IMHO.

Hey guys,

I left the UK several years ago and now have an NT tax code. I ma 5 years off full UK state pension age and I have the option to voluntarily buy some NI credits. I don't have a regular job in the US but file taxes; I have income from property rentals and investments.

Would I be paying Class 2 or Class 3 voluntary contributions? I will be WEPed to the max so I reckon I might as well maximize my UK Pension.

Thanks

A

I also have a question about this. I'm the UKC half of us, planning to move to the UK after my USC husband retires next spring. I've been in the US since October 2012 and so am missing those contributions. I want to pay my class 3 NICs for the missing years (I've run a total of how much they are) now and pay NICs going forward once I'm in the UK. I have until 2023 to pay the shortfall for the oldest ones but they keep increasing. I did speak to HMRC who just seemed to  hear that I live outside the UK so kept repeating 'just fill out the NI38 form'. This form has me filling out a DD mandate which seems to me that HMRC will take out contributions from here forward. I really just wanted to pay the shortfall years right now but there's no way to do that on this form.

So I'm curious. Has anyone else paid their shortfall NICs from outside the UK? If so, how did you do it?

TIA

I also have a question about this. I'm the UKC half of us, planning to move to the UK after my USC husband retires next spring. I've been in the US since October 2012 and so am missing those contributions. I want to pay my class 3 NICs for the missing years (I've run a total of how much they are) now and pay NICs going forward once I'm in the UK. I have until 2023 to pay the shortfall for the oldest ones but they keep increasing. I did speak to HMRC who just seemed to  hear that I live outside the UK so kept repeating 'just fill out the NI38 form'. This form has me filling out a DD mandate which seems to me that HMRC will take out contributions from here forward. I really just wanted to pay the shortfall years right now but there's no way to do that on this form.

So I'm curious. Has anyone else paid their shortfall NICs from outside the UK? If so, how did you do it?

TIA

My wife and have both paid for catch-up years and set up a DD for years going forward. My wife did hers after we got back but I did mine from the USA. I did have a UK bank account so the shortfall came from there. It is too many years ago for me to remember exactly how except that it was via mail from Houston to Newcastle. I filled in a form with my bank details and the lump sum  amount for the 8 years I was quoted (current year plus 7 back years).  It is definitely a 2 fold process, back years and DD for years going forward.

Thanks durhamlad, that's really helpful. I also have a UK bank account so intend to make the actual payment from there, it's less hassle. I got as far (on gov.uk website) as finding an online way to make a payment from outside the UK, but  needed a HMRC reference number. It said if I didn't have one, call HMRC - which I did and got into the NI38 spiral. I told the guy all I thought I was calling for was a reference number to make a payment but he told me HMRC have to approve it. Not the conversation I was expecting and feel like I'm going around in circles.

Who knew it was this hard to give several thousand £s to the tax people... 

Thanks durhamlad, that's really helpful. I also have a UK bank account so intend to make the actual payment from there, it's less hassle. I got as far (on gov.uk website) as finding an online way to make a payment from outside the UK, but  needed a HMRC reference number. It said if I didn't have one, call HMRC - which I did and got into the NI38 spiral. I told the guy all I thought I was calling for was a reference number to make a payment but he told me HMRC have to approve it. Not the conversation I was expecting and feel like I'm going around in circles.

Who knew it was this hard to give several thousand £s to the tax people... 

I do remember going through this with my wife. Ages on the phone and then writing down the long reference number  and double checking it with him so she could pay the lump sum for those  catchup years.