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  #21  
Old 02.05.2018, 12:59
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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Sorry if I’m misunderstanding but isn’t 6 years in the past the maximum length of time contributions can be made retrospectively to make up for missing years?

https://www.gov.uk/voluntary-nationa...-contributions
The HRMC website has old documents as well as the new rules.
As Annie said, you have until 2023 to pay between 2006 and 2016, and a rolling 6 years after then, according to the rules today.

As no-one can be sure they'll actually work until they are 67 (mid fifties is the new mid sixties in many companies), it makes sense to me to get to the 35 years as soon as practical.
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  #22  
Old 02.05.2018, 16:04
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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Is there not a risk (especially for those a couple of decades away from retirement age) that the rules will change and no payment will be made for non-residents?
Of course theres a risk that could happen, but we are talking of 200 CHF a year or 145 quid. Thats a lotto ticket each week!

What high risk product out there quotes 200 CHF a year for 35 years for a return of upward of 100K CHF?

The rules changing is highly likely, contribution period may extend, age at which you can claim and condition of which you can claim, but for such little money...I am not worried that my 3.5 franc euromillions ticket each Friday could be better invested else where!
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  #23  
Old 02.05.2019, 19:14
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

Any more insights into this change? It was supposed to be done by April 2019.

Or is it still Brexit that gets all the CPU cycles?
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  #24  
Old 02.05.2019, 19:16
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

I got a letter the other week asking to pay my outstanding Class 2 contributions to date.
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  #25  
Old 03.05.2019, 07:54
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

Officially delayed until at least after the current electoral cycle.
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  #26  
Old 03.05.2019, 15:10
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

Did you contact them first?

From what I can see, nothing has changed, the date of 2023 to backpay from 2006/7 onwards stands and they won't change this.

https://www.pensionsadvisoryservice....-contributions

Time limits for paying voluntary NICs

HM Revenue & Customs (HMRC) has made changes to extend the time limits for paying voluntary NICs for the 2006/07 to 2015/16 tax years inclusive, to ensure contributors who reach State Pension age under the new State Pension system are not disadvantaged. Those affected will have more time to pay voluntary class 2 or class 3 contributions for the years from 2006/07 to 2015/16. The extended time limits apply if:

person reaches State Pension age on or after 6 April 2016; and
person makes payment by 5 April 2023.

The amount to be paid is as follows:

if paid by 5 April 2019, the amount payable is the rate that applied in the 2012/13 tax year for the tax years 2006/07 to 2009/10 for Class 3 and 2006/07 to 2010/11 for Class 2.
for the remaining years, up to and including 2015/16, higher rate provisions will not apply until 6 April 2019.
if payment is made after 5 April 2019, you’ll be charged an increased amount per week for gaps between April 2006 and April 2017.

You can find further details here: www.hmrc.gov.uk/ni/volcontr/whentop-up.htm


and from the hmrc website:
You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.

You can pay these contributions at different rates if you pay by 5 April 2019.


and the rates are


If you’re a man born after 5 April 1951 or a woman born after 5 April 1953

You’ll pay different rates if you pay voluntary contributions by 5 April 2020 to make up for gaps between April 2006 and April 2016.
Your contribution What it covers Rate you pay until 5 April 2020
Class 2 Gaps between 6 April 2006 and 5 April 2011 £3 a week





DYOR
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  #27  
Old 03.10.2019, 19:16
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

I received letter from HMRC that they approved my application for class 2 NIC contribution (applied in March 2019). I paid 1400 GBP for the last 10 years (2009-2019) ! jumped from 10 years to 20 years contribution overnight !
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  #28  
Old 03.10.2019, 19:45
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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I received letter from HMRC that they approved my application for class 2 NIC contribution (applied in March 2019). I paid 1400 GBP for the last 10 years (2009-2019) ! jumped from 10 years to 20 years contribution overnight !
Excellent deal!
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  #29  
Old 04.10.2019, 15:59
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

That is great, well done. Sent a letter the same time as you, so hopefully a response soon as well! Thanks for updating us
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  #30  
Old 04.10.2019, 18:27
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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For me 160chf a year is a small risk

If you think of how many retirees there are in Spain, France etc this would be upsetting an awful lot of people.
I've been reading this and indeed do envy those who can use it. And indeed if I would have been English it would have upset me, it feels like government playing the role of Santa Claus.

As a Dutch I'd have to pay € 5.278 per year (income 34K or more a year), to buy 2% of a current pension of € 1.158,22 /Month

So that is a whopping 23,16 a month. I expect my pension age officially to be 68 or even 69 by that time. so I'd make a profit if I would have rendered zero profit from that € 5.278 and become 87/88 yrs old.

How about no.
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  #31  
Old 05.10.2019, 21:05
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

Edwin, is that with ABP? Or are you talking pillar 1, in other words AOW?
It is expensive, but is it more so than in CH?

I did do the calculations for Teachers Pension in the UK. For lecturers, you end up with about the same built up in a year in pounds for your private pension as with ABP private pension in the Netherlands (800 pounds and 850 euros for our age per year of yours and employer contributions). I cannot remember if you pay more in one country or the other though...

But yes, even at the maximum National insurance rate, you get a good deal in the UK if you can pay in that amount specifically each year.
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  #32  
Old 05.10.2019, 21:44
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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But yes, even at the maximum National insurance rate, you get a good deal in the UK if you can pay in that amount specifically each year.
Not really NI is 12% of pay for employee between £719-4167 a month above at 2% the employer pays 13.8% on the same band so 25.5% of the pay band, granted you get the NHS thrown in.
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  #33  
Old 05.10.2019, 22:03
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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Not really NI is 12% of pay for employee between £719-4167 a month above at 2% the employer pays 13.8% on the same band so 25.5% of the pay band, granted you get the NHS thrown in.
NIC has nothing directly to do with the NHS.
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  #34  
Old 05.10.2019, 22:23
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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NIC has nothing directly to do with the NHS.
https://fullfact.org/health/how-nhs-funded/ does not agree with you.

"The NHS in England is funded mostly through general taxation and National Insurance contributions."

"General taxation funds about 80% of the budget, and National Insurance contributions cover most of the rest. Total NI contributions to the NHS in 2017/18 were estimated to be just under £24 billion, which is just under 20% of the total budget."
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  #35  
Old 06.10.2019, 00:01
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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https://fullfact.org/health/how-nhs-funded/ does not agree with you.

"The NHS in England is funded mostly through general taxation and National Insurance contributions."

"General taxation funds about 80% of the budget, and National Insurance contributions cover most of the rest. Total NI contributions to the NHS in 2017/18 were estimated to be just under £24 billion, which is just under 20% of the total budget."
At best misleading. NIC represents about 20% of UK government income therefore on average about 20% of NHS funding.

However the UK does not have any linking of tax revenues to specific expenditure therefore there is no actual link. Also there is no connection between payment of NIC and entitlement to use the NHS..

NIC is simply a tax. Income goes into general government funds and the only special feature is the link to certain benefits.
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  #36  
Old 06.10.2019, 02:07
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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Edwin, is that with ABP? Or are you talking pillar 1, in other words AOW?
It is expensive, but is it more so than in CH?

I did do the calculations for Teachers Pension in the UK. For lecturers, you end up with about the same built up in a year in pounds for your private pension as with ABP private pension in the Netherlands (800 pounds and 850 euros for our age per year of yours and employer contributions). I cannot remember if you pay more in one country or the other though...

But yes, even at the maximum National insurance rate, you get a good deal in the UK if you can pay in that amount specifically each year.
I was talking about pillar 1. 2nd pillar is even tho they set the rules not a governmental issue.
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  #37  
Old 06.10.2019, 08:00
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

A few years ago, they lowered the number of years required for full pension from 40 to 30, and then a couple years later they increased it to 35.


I once asked their call center, "What happens if I pay the 35 years, then stop paying until retirement age, but just before I retire, they increase it again to something higher, like 40 years again? I got a waffling, unclear answer.


Anyone have a guess how this would typically be handled ... or know how they handled it last time they upped the number of years required?
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  #38  
Old 06.10.2019, 08:19
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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I once asked their call center, "What happens if I pay the 35 years, then stop paying until retirement age, but just before I retire, they increase it again to something higher, like 40 years again? I got a waffling, unclear answer.
Fairly simple - you will loose pension. As happened to people when they increased it to 35. Unless you can use the 6 year backpayment rule to pay in the missing years.
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  #39  
Old 07.10.2019, 12:30
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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Not really NI is 12% of pay for employee between £719-4167 a month above at 2% the employer pays 13.8% on the same band so 25.5% of the pay band, granted you get the NHS thrown in.
Sorry, you are right. I meant to say after you leave the UK. If people will still be allowed to pay voluntary contributions after they have left and after Brexit is done (?!), then at rate class 2 as well as rate class 3 (say a max of 900 pounds a year by then?!), I think it is still a good deal.

But if you work and pay 12%, that is a lot more if you have an average or high income. However, IMHO it is not enough to fund society properly, and I would be happy to pay a lot more than that.
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  #40  
Old 21.10.2019, 13:58
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Re: scrapping of UK National Insurance class 2 contributions-delayed until 2019

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I received letter from HMRC that they approved my application for class 2 NIC contribution (applied in March 2019). I paid 1400 GBP for the last 10 years (2009-2019) ! jumped from 10 years to 20 years contribution overnight !
Also now received a letter of class 2 approval (also applied in the spring of 19).
You can only go back as far as 2006-2007 and not further back (and only if you worked 3 years before that tax year), but still a very good deal!

They must be processing them in batches..

However, I have noticed that the pages that talk about voluntary contributions once going abroad have been changed! They no longer provide this as an option, as least not for people going to the EU, if I understand it correctly, that is. I do not know if that is 100% confirmed under the new Brexit deal though

Would be a shame!
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