The Italy Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Missed out on NI payments

4 posters

Go down

Missed out on NI payments Empty Missed out on NI payments

Post by Angela Fuller Sun May 03, 2015 5:13 am

Missed out on NI payments? You might want to plug the gap

New rules, which mean you must pay National Insurance for more years to get a full state pension, could affect expats

Missed out on NI payments Share-fb
Missed out on NI payments Share-tw
Missed out on NI payments Share-p
Missed out on NI payments Share-in
Missed out on NI payments Share-share
Missed out on NI payments Share-emailEmail
Missed out on NI payments NI_3112889b
If you're retiring after April 6 2016 you'll need 35 years of NI contributions rather than 30 to qualify for a full pension Photo: Alamy

By Alison Steed
5:25PM GMT 20 Nov 2014
Missed out on NI payments CommentsComment

New rules increasing the amount of National Insurance payment years needed to be eligible for a UK state pension may prompt expats to top up their contributions.
The changes come into effect on April 6, 2016, and affect anyone retiring after that date.
Rather than needing 30 years of National Insurance (NI) payments to qualify for a full state pension, as is currently the case, retirees under the new regime will need 35.
This means that anyone who has missed out on paying NI due to being abroad may wish to consider paying top up contributions.
The idea of the new pension arrangements is to offer a flat-rate pension – expected to be worth around £155 a week – and do away with the other elements that currently make up the state pension, such as the additional state pension and savings credit. The current full state pension provides £113.10 a week.

Related Articles


  • Missed out on NI payments Alison_3041888g  
  • Big decisions looming for expats as UK pensions rules change
    19 Sep 2014
  • Expats who make tax mistakes could be branded criminals
    21 Aug 2014
  • Getting your hands on your pension could be tougher than expected
    30 Oct 2014

Fewer qualifying years of National Insurance contributions reduce the weekly amount accordingly.
To qualify for any amount of the new pension in future, you will need to have at least 10 years of qualifying National Insurance (NI) contributions. The current rules require just one year’s payment to be eligible for some state pension payments.
Experts have recommended that expats and former expats seek advice on whether they should make voluntary contributions to plug any gaps in their NI contributions. The decision will depend on personal circumstances and it may be more prudent to put the money into a separate investment.
Dawn Register, partner at BDO Tax Dispute Resolution, said: “Financial advice considerations need to be taken into account as it largely depends on life expectancy and future intentions on where you are going to live. It may be worth checking whether or not you are entitled to a full state pension, and you can check by asking the National Insurance office. Then you can make a decision on whether you want to plug the gap.”
Expats who have moved overseas permanently are not able to get a refund on their NI contributions, even if they have no plans to retire in the UK in the future.
Adam Cole, specialist in advice policy at independent financial adviser Towry said: "The UK’s NI system is ‘pay as you go’ so you cannot get a refund as such. But if you have paid in to qualify for the state pension, then you are entitled to some amount of state pension.
“Certainly within the EU, if you have paid in [to the UK scheme] and met the minimum thresholds you would be able to claim the state pension.”
If you are working abroad, you may still be eligible to pay NI contributions in the UK depending on where you are working, who for, and for how long, added Patrick Connolly, certified financial planner at Chase de Vere.
“If your UK employer sends you abroad to work, for up to two years, you might simply need to carry on paying UK National Insurance as usual," he explained.
"If you leave the UK you may need to decide whether you wish to pay voluntary National Insurance contributions while you are away. This is likely to depend on whether you plan to claim the UK state pension in the future, whether you’re likely to be returning to the UK and on the state pension entitlements you’ve already built up.
“Either way, you should make sure that you understand the rules which govern your entitlement to the UK state pension.”
More information on the state pension and paying voluntary top-up contributions can be found on the HMRC website.
Telegraph Money Transfer Service»
Missed out on NI payments MoneyTransfer_2906624e
Telegraph Money Transfer Service

The best way to transfer money overseas

find out more
 

Expat Money


  • Tax »



  • Pensions »



  • Expat »



  • Before you go »





In Expat Money
Missed out on NI payments World-editon-puff_1757536g  

The Telegraph Weekly World Edition

Missed out on NI payments Emigration-Guide--_2280606g  

Free expat guides

Missed out on NI payments Landgirlssummary_2369751g  

Expat picture galleries

Missed out on NI payments MT_-_Laptop_2662855g  

Telegraph International Money Transfer


Missed out on NI payments Share-fb
Missed out on NI payments Share-tw
Missed out on NI payments Share-p
Missed out on NI payments Share-in
Missed out on NI payments Share-share
Missed out on NI payments Share-emailEmail
Promoted stories
Missed out on NI payments VfIE6-cWV-148x87
If you're so busy, then how come you are reading this? The Economist
Missed out on NI payments 11RUtv-cWV-148x87
Is India The Next China? TalkMarkets
Missed out on NI payments 11neXF-cWV-148x87
13 Investors Share Their Biggest Investing Mistake And What… TalkMarkets
Missed out on NI payments 145DaO-cWV-148x87
20 Of The Hottest Women In The World LOLWOT
Missed out on NI payments 13rNdY-cWV-148x87
5 Useful Apps for Small Business Owners Jumix Design
Missed out on NI payments 14i2S6-cWV-148x87
What’s Wrong With Inequality? New York Times
Missed out on NI payments 132caK-cWV-148x87
"Capital Cities of the World #2" quiz. How well do you know… Revolvy Nowhere
Missed out on NI payments 132cfS-cWV-148x87
"1940s Vehicles" quiz. Can you identify the brand of these… Revolvy Nowhere
[url=http://www.lolboom.net/these-images-of-ghanas-electronics-dump-will-blow-your-mind-and-break-your-heart/?utm_source=ob-nt-2&utm_medium=LolBoom.net-Desktop-CA-EwasteAA&utm_content=&utm_campaign=Kids In Africa Are Burning Your Electronic Waste For Money All While Sacrificing Their Health %26 The Environment]Missed out on NI payments 152CIy-cWV-148x87 [/url]
[url=http://www.lolboom.net/these-images-of-ghanas-electronics-dump-will-blow-your-mind-and-break-your-heart/?utm_source=ob-nt-2&utm_medium=LolBoom.net-Desktop-CA-EwasteAA&utm_content=&utm_campaign=Kids In Africa Are Burning Your Electronic Waste For Money All While Sacrificing Their Health %26 The Environment]Kids In Africa Are Burning Your Electronic Waste For Money…[/url] LolBoom
Missed out on NI payments 14a6Kv-cWV-148x87
The Kardashians’ Coachella Style Supercuts
Missed out on NI payments 11ULle-cWV-148x87
5 of the Biggest Weight Loss Myths Your Doctor's Orders
Missed out on NI payments 14Ebmk-cWV-148x87
5 Financial Moves Making in 20s & Get Rich 40s Kelley & Fulton, P.L.
Recommended by

Read more Personal Finance News»

Why buy shares when you can lend to companies instead for more than 6pc?

Missed out on NI payments Money_2452709f  

The rush to all manner of 6pc income investments is understandable given the outlook for rates, says Richard Dyson

Comment  

The 'stealth' taxes that have risen by up to 80pc

Missed out on NI payments Gap_3288893f  

Under David Cameron the middle classes have suffered some of the biggest 'indirect’ tax increases of any group. Would the Conservatives’ tax pledges really reverse this trend?

45 Comments  

Jim Slater: Both these firms are fast-growing, but I'd only buy shares in one

Missed out on NI payments Asos_2344967f  

One is a housebuilder, the other an online fashion store. Both are growing, but only one of them deserves a place in your portfolio

1 Comment  

The party manifestos are depressing if you're under 30 and don't have rich parents

Missed out on NI payments Brand96_w_3147107f  

Comment: politicians' efforts to capture the 'youth vote' are superficial and won't really help young people, says Katie Morley

408 Comments  

New ten-year mortgage for under 3pc - with only a 20pc deposit required

Missed out on NI payments Houses_2665734f  

Borrowing gets even cheaper as lenders slash 10, five and two-year fixed rates. But hurry, some of the rates are available for 10 days only

21 Comments  

Nationwide improves cash Isa range with five top-paying accounts

Missed out on NI payments Nationwide-Bank_3286195f  

Britain's biggest building society has made changes to its cash Isa range. We look at the crop of rates on offer

3 Comments  

'My mother's First Pacific shares are in limbo'

Missed out on NI payments Hong-Kong_2406552f  

Our consumer champion gets resolution for a reader after a long fight with First Pacific

Comment  

'I owe Scottish Power £600 after being billed for an empty house'

Missed out on NI payments Scotpowermeterx_3286640f  

A reader called Scottish Power only to be told that he had a huge estimated bill for a property that was empty

9 Comments  

More bogus firms offer fake Ferrari shares

Missed out on NI payments Ferrari_2592522f  

Fears mount about the scale of the Ferrari shares scam as more ordinary British savers are being aggressively pursued to invest thousands of pounds

4 Comments  

Why won't NatWest pay our travel insurance claim?

Missed out on NI payments Jan-and-Brian-Blak_3286332f  

A reader found that case of his wife's illness on a cruise was not settled swiftly

2 Comments  
Ads by Google

  • High Return Inv - Italy



    £80k-£1m To Invest? Free Review To Get You The Best Offshore Rates!
    expatsavingsreview.com
  • British Expat In Italy?



    Avoid Needless Tax On £70k+ Pension Download a Free Expat Pension Guide
    your.expatpensionreview.com
  • Expat Health Insurance



    Quick, Easy Compare TOP Providers Expatriate Health Insurance Quotes
    www.expatfinder.com/Instant-Quotes


How we moderate
blog comments powered by Disqus
Missed out on NI payments Nedbank_3288693a

EXPAT HOME»

Missed out on NI payments Expat_logo_tilt_60_1460198h
Before You Go
Expat Money
Expat News
Expat Life
Expat Property
Expat Health
Expat Education
Expat Directory
MyExpat
Expat Email Bulletin





Expat Most Viewed

  • TODAY
  • PAST WEEK
  • PAST MONTH  


  1. Five reasons why everyone should live abroad at least once
  2. Luxury villa of couple arrested in £1.6 million Bali cocaine smuggling racket
  3. The 10 funniest Danish expressions and how to use them
  4. Moving guide: 10 things to know before relocating to Qatar
  5. What’s it like to live in Qatar, the world's richest country?


More from The Telegraph



  • Missed out on NI payments Audi_TT_280x175_3210311a
    Compare new car deals
    Compare upfront new car deals from trusted dealers on carwow and get the best buying experience
    View


Promoted stories
Missed out on NI payments 10dokr-XJo-128x80
3 Best Places to Build your own Website

 (Website Builders)

Missed out on NI payments 13rXfP-XJo-128x80
How We Saved $475 on Flight Tickets With This Simple Trick

 (SaferVPN)

Missed out on NI payments 12ShFF-XJo-128x80
Here Are 6 Rules For Investing Like Warren Buffett

 (TalkMarkets)

Missed out on NI payments 132cSn-XJo-128x80
Can you match these past or present currencies with the country?

 (Revolvy Nowhere)

Recommended by


Last edited by Angela Fuller on Sun May 03, 2015 7:04 am; edited 1 time in total
Angela Fuller
Angela Fuller
Moderator

Location : Le Marche
Posts : 746
Join date : 2013-05-20

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by modicasa Sun May 03, 2015 6:40 am

I thought this would happen.  Ahme   
Does anyone know if you can pay NI in UK and INPS here concurrently and therefor by paying 1 years 'double' contributions gain 2 qualifying years?

modicasa
Elder

Location : Sicily
Posts : 534
Join date : 2013-05-20

http://www.modicasa.com

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by stevegwmonkseaton Sun May 03, 2015 8:22 am

modicasa wrote:I thought this would happen.  Ahme   Does anyone know if you can pay NI in UK and INPS here concurrently and therefor by paying 1 years 'double' contributions gain 2 qualifying years?

Afraid not Modi. What happens is that your state pension is calculated on an individual country basis, then on your combined (UK & Italy) insurance and a pro-rata  amount calculated if this is higher than the individual amount, then that is paid. Both countries do this and have done so for as long as I remember, originally under a reciprocal agreement with the UK and Italy, then under the EEC agreement when the UK joined. Rarely have I known the joint calculation to benefit anyone, but it can in cases where there are minimum amount/year/contribution conditions mean people do get a pension under this calculation, whereas they would not do so on the individual calculation. A bit complex, but basically all you have to do is tell each of the pension authorities when you claim your pension that you worked and paid insurance in another country, they should then automatically initiate contact with the country(s) involved. If it's anything like it used to be, then you may have a slight problem where you are living. Basically with most of the Southern INPS offices the DWP used to issue forms to them and if it was summer not bother to chase them  for at least 3 months! In the Palermo office many years ago they found out some guy at the airport was selling the bags of mail to a waste paper company... Hence a lack of replies...
Getting back to rip-off Britain, you basically are looking at a gamble on how long you are going to live to see if it is worth paying voluntary contributions. With the changes they have made already and likely still to make, it is a very difficult choice. However at least now there is (currently) no minimum payable amount as there was in the past whereby for up to around 10 years paid you got nothing.... This is good as even one year gets you some pension in payment these days and that qualifies you for other things, such as an S1...

stevegwmonkseaton
Elder

Location : Abruzzo
Posts : 1927
Join date : 2013-05-20

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by modicasa Mon May 04, 2015 5:27 am

Thought as much, as you now cant buy backin for years long gone, it becomes an academic point - now I have to work till I drop whether Im in Italy or the UK ,so makes even less sense to think about going back......

modicasa
Elder

Location : Sicily
Posts : 534
Join date : 2013-05-20

http://www.modicasa.com

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by Admin Mon May 04, 2015 11:36 am

You can pay in I think 6 years back. We have just started paying voluntary contributions. We've both got 26 years already so we might as well pay as we go. They don't count my husband's years in the army (nice eh?) otherwise he'd have more, being older. The very helpful lady at the Pensions overseas office said they fully expect it to rise to 40 years to match other European countries.
Admin
Admin
Admin

Location : Italy
Posts : 714
Join date : 2013-05-16

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by stevegwmonkseaton Mon May 04, 2015 1:05 pm

Admin wrote:You can pay in I think 6 years back. We have just started paying voluntary contributions. We've both got 26 years already so we might as well pay as we go. They don't count my husband's years in the army (nice eh?) otherwise he'd have more, being older. The very helpful lady at the Pensions overseas office said they fully expect it to rise to 40 years to match other European countries.

You can pay the current year, plus 6 years back vol conts, certain age groups, this can be paid after retirement age. Not too sure how your OH is not covered whilst working in the army. If HM forces, then they pay NI the same as anyone else, although prior to 6/4/75 (or was it 78?) these were recorded differently.... If it is in a period a while back you may need to chase the DWP to make sure the period is recorded on their records.... As to the possibility of it going to 40 years, it always was until they reduced it to 30 as a sweetener for removing things like the married woman's pension based on her husbands insurance and this was the justification for doing so. Obviously they knew then they would simply remove this sweetener  over time and no one would be any the wiser... It just goes to show what a total bunch of ..... these UK politicians are!

stevegwmonkseaton
Elder

Location : Abruzzo
Posts : 1927
Join date : 2013-05-20

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by Admin Mon May 04, 2015 2:38 pm

Thanks Steve I'll get him to chase it with the DWP. I don't think he gets it for the first 2 years as he went in at 16 and for some reason it doesn't count.
Admin
Admin
Admin

Location : Italy
Posts : 714
Join date : 2013-05-16

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by stevegwmonkseaton Mon May 04, 2015 6:40 pm

Okay I had a quick look, it was from and including the 75/76 tax year that National Insurance Contributions (NICs) became earnings related, 74/75 and prior they were flat rate and for HMF it was during the flat rate period they used peoples dates in HMF to post contributions. After that, from and inc 75/76 it was on earnings and there was a minimum amount before you paid (called Lower Earnings Level - LEL). If it was this period and HM forces were paying that little, then they may not have paid... The proper process would have been to issue a deficiency notice to anyone falling into this category advising you could pay class 3 (voluntary ) to cover that year. For a number of years during this period I'm sure due to systems failures many  did not get these. Those that did likely ignored them as you didn't have to pay....

stevegwmonkseaton
Elder

Location : Abruzzo
Posts : 1927
Join date : 2013-05-20

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by Admin Mon May 04, 2015 9:55 pm

Thanks Steve. He left in 85 but I suspect the pay was very verh low and was paid in Deutchmarks!
Admin
Admin
Admin

Location : Italy
Posts : 714
Join date : 2013-05-16

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by stevegwmonkseaton Tue May 05, 2015 8:41 am

84/5 the LEL was £34 per week (from here) and the German mark around 3.8 to the pound ( from here ). Rough idea of the pay and you may know why the years were not covered. I can't recall if they posted "Nil" contributions (a job, but below the LEL), but I suspect they should have, if they did, then they should be able to confirm they know there was a "nil" return on his NI account. Payment in DEM or other currency would make no difference as the wage would be calculated in GBP and converted (I guess to make it easier for those posted abroad).

stevegwmonkseaton
Elder

Location : Abruzzo
Posts : 1927
Join date : 2013-05-20

Back to top Go down

Missed out on NI payments Empty Re: Missed out on NI payments

Post by Sponsored content


Sponsored content


Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum