Paying NI on a foreign income pension?
Discussion
My pension is paid in US$ from overseas, into U.K. bank. I have been out of the system since 1989 but have done a tax return every year since 2002, and no payment required.
Not living in the UK and not paying income tax, I never paid NI deductions. Obviously no state pension coming my way in the future.
So, as of this year, I am living back in the U.K. and I assume I will have to pay the usual income tax on my relatively small pension income as it is over £10,000 a year. But, how do I pay the NI part?
Years ago I was told by my tax accountant I could make ‘voluntary contributions’ to,the NI system, but that there was no point in doing it. I paid little attention as I was living overseas with no plans to return. But we all know how life has a habit of changing suddenly.
I am recieving Child Benefit currently, as my daughter is still in school, so I believe that actually covers NI contributions in some form, but should I pay anything else in?
Anyway, I’m am pretty unfamiliar with the whole system, not having been in it for so long. Any information out there?
Not living in the UK and not paying income tax, I never paid NI deductions. Obviously no state pension coming my way in the future.
So, as of this year, I am living back in the U.K. and I assume I will have to pay the usual income tax on my relatively small pension income as it is over £10,000 a year. But, how do I pay the NI part?
Years ago I was told by my tax accountant I could make ‘voluntary contributions’ to,the NI system, but that there was no point in doing it. I paid little attention as I was living overseas with no plans to return. But we all know how life has a habit of changing suddenly.
I am recieving Child Benefit currently, as my daughter is still in school, so I believe that actually covers NI contributions in some form, but should I pay anything else in?
Anyway, I’m am pretty unfamiliar with the whole system, not having been in it for so long. Any information out there?
I dread to think how much back payment voluntary contribution I would need to get £155 a week back, in another ten years when I reach 67. Or whatever it will have changed to by then.Eric Mc said:
But you would get something.
You can use on line calculators to work out what entitlement you will get - even if you just start paying NI now.
As I said, if you start an employment somewhere, you will be paying Class 1 NI anyway.
I tried one of those calculators, but it told me it could not calculate because I had spent time working of living overseas. You can use on line calculators to work out what entitlement you will get - even if you just start paying NI now.
As I said, if you start an employment somewhere, you will be paying Class 1 NI anyway.
LC23 said:
You say this is a pension distribution from an overseas pension fund? There is no NIC to pay on pension distributions.
As for paying NIC, as Eric said you can make voluntary contributions and you'll also pay on employment/self employment income you earn. Don't forget you may be entitled to a state pension frompen the countries you have been living and working in all these years.
I was working offshore, for a US company, based in the Virgin Islands, and the pension is based from Dubai. No pension was paid into other than my company system. As for paying NIC, as Eric said you can make voluntary contributions and you'll also pay on employment/self employment income you earn. Don't forget you may be entitled to a state pension frompen the countries you have been living and working in all these years.
Interesting what you say, no NIC on foreign pension distributions. I assume I do have to pay tax though......
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