The Lemon Fool

Happy new year! A quick question about NI if you don't mind

As an expat, I know I can choose to pay voluntary NI contributions and build up rights to a full state pension, but the more attractive class 2 rate is only for people who went directly from a UK job to a foreign one. I'm working overseas now, but wasn't working immediately before leaving the country, or for some time afterwards (fulltime parent!)

I can't find where it says how much time anyone has to spend working in the UK to qualify for class 2, and that suggests the cunning plan of taking a week's annual leave from my foreign job and flying back for a few days of temp work, then leaving again with the right to pay the cheap NI.

I realise I'd have to declare the earnings for tax where I live now, and that finding a suitably short PAYE job (though would it have to be PAYE?) might take some doing, but in principle does this sound like it would fly?

Welcome to The Lemon Fool.

Hmmm ... I dunno but it sounds like gaming the system and HMRC tend to have a dim view of that.

The guidance, under Paying voluntary National Insurance contributions while you’re abroad says:

"2. In addition to meeting condition 1(a) or 1(b), you must also, immediately before going abroad, have been ordinarily an employed or self-employed earner in the UK."
https://www.gov.uk/government/publications/social-security-abroad-ni38/guidance-on-social-security-abroad-ni38#paying-voluntary-national-insurance-contributions-while-youre-abroad

That word "ordinarily" makes me suspect that a few days of temp work during a week's annual leave from your foreign job wouldn't be thought of as "ordinarily" by HMRC. I'd also be concerned that taking up a job in the UK, for however short a period, that you use to declare for this purpose could get you into a quagmire of HMRC questioning your tax residency and/or requiring you to file a self assessment.

Still, you may find an answer in the relevant sections of the HMRC internal manual on NI -- warning: very dry reading!

https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim23500

Irrespective of whether you are within the law or not with your cunning plan, just pay Class 3 contributions whilst working abroad and make your life easier. Then you can relax and know that you are within the system.

If HMRC took an interest, it would be very evident that is a totally artificial plan anyway and I expect that they would annul it

Dod

And people wonder why the UK is so messed up.

Thanks for replies. Can't deny this would be a very artificial arrangement, so will now take the pencils out of my nose and probably sign up for overseas class 3.

If "ordinarily" isn't defined anywhere, I suppose common sense says it would have to be for the majority of at least one tax year.