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Old 09.01.2019, 17:18
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scrapping of UK National Insurance class 2 contributions-- Cancelled?

Class 2 NI was due to be abolished 6th April 2019.

Scrambling around trying to beat the deadline (14 weeks processing @HMRC) I found this on the gov.uk website which states the proposal was withdrawn.

https://www.gov.uk/government/public...-contributions

Anyone got any further info on how this will affect those overseas?
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Old 09.01.2019, 17:24
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

On 2 November 2017 the Government announced a one year delay to the abolition of Class 2 NICs. Class 2 NICs will now be abolished from 6 April 2019 rather than 6 April 2018.

This also impacts those of us overseas. It could be worth still applying if you pay back the last 6 years and it is enough to qualify for a pension (or if you are happy to pay the higher class 3 NIC in the future).

EDIT: it seems they kicked the can down the road for another year (at least)

Last edited by Phil_MCR; 09.01.2019 at 18:19.
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Old 09.01.2019, 17:27
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

Hi Phil_MCR,

From the link:

"This publication was withdrawn on 7 September 2018
The government confirmed at Budget 2018 that it will not abolish Class 2 National Insurance contributions."

So I'm hoping to be accepted for class 2 even if not processed by 6th April.
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Old 09.01.2019, 17:30
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

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On 2 November 2017 the Government announced a one year delay to the abolition of Class 2 NICs. Class 2 NICs will now be abolished from 6 April 2019 rather than 6 April 2018.

This also impacts those of us overseas. It could be worth still applying if you pay back the last 6 years and it is enough to qualify for a pension (or if you are happy to pay the higher class 3 NIC in the future).
That was then - in the 2018 budget they delayed the abolition indefinitely. So until they decide otherwise, Class 2 NIC remains, at least until they next change their minds.
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Old 09.01.2019, 17:44
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

Whats been mentioned above is how I understand it to be...


When they talked of getting rid of it, in April 2019, it would have meant that your payment now would have still been at the old rate, Apr 18 -Apr 19. It would have been next year you would have had to pay the higher amount.


That for the moment has been knocked on the head, so as far as I know the lower rate will continue.


Given the Pound is trading below 1.25 at the mo, and the lower rate does exist I would definately look at plugging any gaps.


In rough figures, a one off payment each year of 145, buys you about 250 each year from retirement till death. You'll Need a Minimum of 11 years to qualify for anything, and the Maximum is currently 35 years.
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Old 09.01.2019, 18:18
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

From the 2018 budget it mentions:

"National Insurance Contributions Bill As previously announced in September, the government will not abolish Class 2 NICs during this Parliament, given the potential impacts on some of the lowest earning in society."

So it looks like they will kick the can down the road for another year.
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Old 09.01.2019, 18:23
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

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Whats been mentioned above is how I understand it to be...


When they talked of getting rid of it, in April 2019, it would have meant that your payment now would have still been at the old rate, Apr 18 -Apr 19. It would have been next year you would have had to pay the higher amount.


That for the moment has been knocked on the head, so as far as I know the lower rate will continue.


Given the Pound is trading below 1.25 at the mo, and the lower rate does exist I would definately look at plugging any gaps.


In rough figures, a one off payment each year of 145, buys you about 250 each year from retirement till death. You'll Need a Minimum of 11 years to qualify for anything, and the Maximum is currently 35 years.
you need a min of 10 years to qualify (for the new one) and 35 years to get a full pension.
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Old 09.01.2019, 18:27
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

I'm guessing pension age will be >70 by the time I reach pensionable age, so there's quite a few decades before I can cash it. A bit of a gamble that it will be still worthwhile in the future.
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Old 09.01.2019, 19:22
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

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I'm guessing pension age will be >70 by the time I reach pensionable age, so there's quite a few decades before I can cash it. A bit of a gamble that it will be still worthwhile in the future.
Of course it's a gamble. We gamble by saving for retirement when we may not even make it that far.

But if you have a product to sell that costs me a lotto ticket each week or 15 grand total for a government backed potential payout of 9k a year or 90k every ten retirement years you live... I'll buy into it!

Even if the scheme is extended so you can't claim until 71 years old and you need 40 contributing years into it. You'll only need 2 years of claiming to be quids in

It's a gamble I am happy to make
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Old 09.01.2019, 19:56
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Re: scrapping of UK National Insurance class 2 contributions-- Cancelled?

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Of course it's a gamble. We gamble by saving for retirement when we may not even make it that far.

But if you have a product to sell that costs me a lotto ticket each week or 15 grand total for a government backed potential payout of 9k a year or 90k every ten retirement years you live... I'll buy into it!

Even if the scheme is extended so you can't claim until 71 years old and you need 40 contributing years into it. You'll only need 2 years of claiming to be quids in

It's a gamble I am happy to make
I'm making the gamble too.
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