NI contributions while working abroad

[Fred Bloggs]

It's important to check this out as you now don't need as many years contributions for a full pension. When I got my pension forecast last year I'd already exceeded the minimum contributing years by four. So, as I understand it, if I went abroad from now till retirement, I'd still get my UK state pension paid with no further NI payments made by myself.

[BoyBlue]

If they refund your contributions then you will be short. You can pay voluntary contributions but these are at a higher rate and you only have a certain amount of years in which you can pay them. If you were registered as self-employed, it's possible at some stage that HMRC will require self-assessments tax returns for the missing years.

It may be wise to get a pension forecast so you know where you're at.

They told me that they are obliged to refund me the class 2 contributions that I had made since March 2002 until about 5 months ago.

They will not want any tax returns for for the 'missing years' as they were not 'missing' but I was non UK tax resident (with no income from the UK or any other UK gains) since 2002 until my return 6 months ago. I was registered as such at the Center for Non Residents when they actually decided to stop sending me tax returns (after completing one when I started working abroad) when I informed then that I was working abroad and registered locally paying tax and SS there. They then took me off all together until I did my P86 when last November when I returned to the UK.

[Sally BFCA]

If they refund your contributions then you will be short. You can pay voluntary contributions but these are at a higher rate and you only have a certain amount of years in which you can pay them. If you were registered as self-employed, it's possible at some stage that HMRC will require self-assessments tax returns for the missing years.

It may be wise to get a pension forecast so you know where you're at.

[BoyBlue]

Hi

I went to work abroad in March 2002 through a UK agency and via a management company (dropped the management company a couple of years later after setting up our local co-op company in my new country of residence). Their accountants registered me as UK self employed just before I left so that I could claim the E101 and E102 as a self employed person seconded abroad . This mean't that I was excused paying the local social security for the 1st two years as I was paying it back in the UK to HMRC NI via direct debit @ about £11/month. Well I ended up being out of the UK for 8 years and being non UK tax resident (I was registered as non UK tax resident at the centre for non residents Liverpool after one year of working in my new country) and did not have any UK income during that time. Myself and a couple of other contractors set up out own local company in the country we were working and tax resident and paid all taxex and social security (after the E101 and E102 had finished) there.

I returned to the UK a few months ago (after being away for 8 years) and completed my P86 and cancelled the direct debit with the HMRC NI contributions @ £11/month about 4 months ago. I just received a letter from the NI office at my new UK address (from my P86 form) for a bill for the last 4 months of about £50 (from the date I cancelled my direct debit).
I should have cancelled my UK self employment status I guess about one year later in my new country of residence but never thought anything of it. so kept on paying the £11/month for all those years.
Anyway I called them and told them I am no longer self employed and never carried out any UK self employment dutied in the UK but was seconded abroad. All they wanted to know is a date of my termination as self employed and they say I will get back the payments that I have been making over the years via my direct debit. What date should I put? I was thinking that as I used the E101 and E102 that I should tell them that my self employment status ended two years after I left the UK to work abroad. I don't really care about the refund but just want to give a correct date.

HMRC Center for Non Residents did send me a tax return for the year 2002-2003 which I completed abroad the took me off all together. It looks like the NI office and the tax office don't communicate as the NI office didn't know I was abroad but the tax office had me 'correctly' listed as non Uk tax resident.