Class 2 NI - overseas

[caziques]

Anyone know about Class 2 NI voluntary contributions from overseas?

I'm 66, and get a full NZ state pension.

I'm also entitled to a small UK state pension as I have 13 years of NI contributions.

This UK pension (which would be frozen for ever) would go to the government here (about 70 pounds a week).

However, if I paid 6 years of class 2 voluntary contributions, 1076 pounds (3.45 a week), would this entitle me to 6/35 of the UK state pension? or 1714 pounds a year, 33 pounds a week?

Voluntary contributions to the UK are not counted for NZ state pension purposes.

Been in NZ for 23 years, self employed in the UK before that.

Is is that simple?

[trevalvole]

Looks like it depends on whether you are currently working or not. If not, it'll be Class 3 at around £800 per year of contributions.

https://www.gov.uk/voluntary-national-insurance-co...

[Simpo Two]

caziques said:

Is is that simple?

Nothing about NI is simple...

As said, voluntary contributions are Class 3 which is a much higher rate, but may still be worth it ('do the math').

However, that said, we Brits have been banging away on the phone to HMRC to get ours sorted out and very few of us have had any success in getting through. The ONLY way you can get NI sorted out is by phone, first to get the amount, then to get a payment reference number. See the recent threads on the subject.

[caziques]

From a government website:

"Class 2, if they are for a period when you have been self-employed but not earning enough to have to pay those contributions (or to be treated as having paid contributions), or you have been employed or self-employed overseas;"

Employed and/or self employed overseas.

So on the face of it, pay as many years as I can at 3 quid odd a week, and have some beer money for life.

[moles]

No as far as I’m aware nz and uk have a social security reciprocal agreement and you are only entitled to 1 of the 2 pensions from respective governments. With the uk one being frozen at the date of withdrawal and not index linked it’s better to stick with the nz one.

[Simpo Two]

caziques said:

From a government website:

"Class 2, if they are for a period when you have been self-employed but not earning enough to have to pay those contributions (or to be treated as having paid contributions), or you have been employed or self-employed overseas;"

Employed and/or self employed overseas.

So on the face of it, pay as many years as I can at 3 quid odd a week, and have some beer money for life.

Doesn't tally with what I know. Class 2 is what you pay if you're self-employed, and if you earn below a certain amount you get NI credits.

No you can't just pay £3 a week and get a full state pension from the British taxpayer. Or if you can, tell me how you did it and I'll have some too...

[LC23]

Request a pension forecast from HMRC where you can set out the impact of paying voluntary contributions (if you are eligible).

Also it is possible to pay voluntary class 2 NIc. Again you need to check your eligibility but in theory it can be done.

[Simpo Two]

LC23 said:

Also it is possible to pay voluntary class 2 NIc. Again you need to check your eligibility but in theory it can be done.

Is that open to Brits? I thought voluntary contributions were Class 3, which are about 3x the price.

[LC23]

Simpo Two said:

LC23 said:

Also it is possible to pay voluntary class 2 NIc. Again you need to check your eligibility but in theory it can be done.

Is that open to Brits? I thought voluntary contributions were Class 3, which are about 3x the price.

Yes it's open to UK nationals. You need to check your personal position and whether you can pay Class 2 voluntary but it's not just Class 3 that can be paid on a voluntary basis.

Below is the same link as already posted above.

https://www.gov.uk/voluntary-national-insurance-co...

Edited by LC23 on Tuesday 18th April 06:47

[caziques]

Got through on the phone a couple of times last night, cut off twice.

NZ rules changed a few years ago, a state pension as a result of voluntary contributions don't have to be handed over to the government here.

Looks like a theoretical possibility I could pay back to 2006, about 3000 pounds - for 85 pounds a week (frozen).

There must be a catch.

I will have to hand over 70 pounds a week as I have 13 years of NI contributions apparently - not sure how.

[caziques]

Got my chart of what to pay, Class 3 contributions.

Basically 13,000 pounds to pay for 85 pounds a week pension (contributions can be backdated to 2006 at the moment)

The e mail then goes on to say I may be able to pay Class 2 at 3.45 a week if I have been employed or self employed in New Zealand - which I have (been here since 2000).

So it's quite possible for 2,900 I get the 85 pounds a week, seems like a good deal to me.