Go Back   English Forum Switzerland > Help & tips > Insurance  
Reply
 
Thread Tools Display Modes
  #1  
Old 13.12.2020, 23:25
Junior Member
 
Join Date: Feb 2009
Location: zurich
Posts: 57
Groaned at 0 Times in 0 Posts
Thanked 20 Times in 14 Posts
empeppa has earned some respectempeppa has earned some respect
Buy back missed year on UK National Insurance, Class 2 or Class 3?

I've decided to buy back the missing years of my UK national insurance contributions after 10 years in Switzerland.

I got really confused with Class 2 vs Class 3 National Insurance, which Class 2 is way cheaper than Class 3.

I am currently working in Switzerland, it seems I can be qualified for Class 2.

Will there be benefit differences when paying into Class 2 vs Class 3 when I retired? Will I get less National Insurance pension if I pay in Class 2?

Why is Class 2 way cheaper? just curious. it seems only to apply to people who are employed in Oversea, or self-employed in the UK? what's the idea behind it?

Thanks, folks.
Reply With Quote
  #2  
Old 13.12.2020, 23:37
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,211
Groaned at 275 Times in 181 Posts
Thanked 17,571 Times in 7,420 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Buy back missed year on UK National Insurance, Class 2 or Class 3?

it's basically a loophole that was never closed. just pay the class 2 and save money!
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #3  
Old 14.12.2020, 00:09
Forum Veteran
 
Join Date: Aug 2015
Location: Basel
Posts: 2,212
Groaned at 53 Times in 44 Posts
Thanked 1,427 Times in 833 Posts
Landers has a reputation beyond reputeLanders has a reputation beyond reputeLanders has a reputation beyond reputeLanders has a reputation beyond repute
Re: Buy back missed year on UK National Insurance, Class 2 or Class 3?

I think it would be the same in the end.
I googled "Class 2 cheaper than class 3" and found the following:


https://www.litrg.org.uk/tax-guides/...-contributions



"Class 2 NIC can also be paid on a voluntary basis if an individual leaves the UK. However, this only applies where you will be self-employed or employed abroad. Class 2 contributions are cheaper than Class 3 contributions and actually protect more benefits than Class 3, so if you want to pay NIC on a voluntary basis, and will be employed or self-employed in some form whilst overseas, it may be cheaper to pay Class 2 NIC."


Doesn't help to explain why the differences are there though. I suppose maybe it's thought self-employed do more work the the same reward as employed?


Another web page goes on to say about paying back years "However, Class 2 contributions are to be abolished from 6 April 2019, so 2018/19 is the last year for which this option is available." so do it now if you want to.
Reply With Quote
This user would like to thank Landers for this useful post:
  #4  
Old 14.12.2020, 11:54
peaky's Avatar
Senior Member
 
Join Date: Nov 2013
Location: zurich
Posts: 342
Groaned at 5 Times in 5 Posts
Thanked 228 Times in 127 Posts
peaky is considered knowledgeablepeaky is considered knowledgeablepeaky is considered knowledgeable
Re: Buy back missed year on UK National Insurance, Class 2 or Class 3?

Pay class 2. You get the same pension money. Everyone does under the current system.

Class 3 also includes maternity pay, sickness pay etc etc, everything you wouldnt be entitled to claim even if you paid it.

Class 2 is likely to be stopped soon, so rack up as many cheap years as possible.
Reply With Quote
The following 2 users would like to thank peaky for this useful post:
Reply

Tags
pension




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
scrapping of UK National Insurance class 2 contributions-delayed until 2019 Guest Finance/banking/taxation 39 21.10.2019 14:58
scrapping of UK National Insurance class 2 contributions-- Cancelled? 123abc Finance/banking/taxation 9 09.01.2019 19:56
Converting D class NY state license to Class D in Zurich? murphy70 Transportation/driving 2 07.03.2015 10:32
MB R-Class / Volvo XC90 / MB M-Class / Land Rover Discovery 4 [Family Car Questions] defcon3 Transportation/driving 78 16.01.2015 00:10
Do you prefer travelling 1st class or 2nd class on the trains? Phil_MCR Transportation/driving 74 07.07.2011 00:55


All times are GMT +2. The time now is 11:08.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0