Ordinarily resident in the UK with foreign income. What NI class?

Hello, I have lived in the UK for 18 months and I am ordinarily resident here. I have settled back in the UK including having children here, renting a house and car, and having absolutely no ties to Australia. However, I am still in receipt of a foreign income. I pay tax on the foreign income in the UK and get a UK personal allowance. The foreign income is from a workers compensation insurance company due to an injury I had at work in Australia. Essentially it is an employer income protection scheme, that was provided by my previous employer, who I no longer work for since July 2022. The table detailing which NI contributions I can pay voluntarily whilst abroad only gives information about my eligibility either when "living and working abroad" or "living but not working abroad". I don't know what my eligibility is currently, I.e. living in the UK and earning foreign income. The only information I could find about what NI is payable for ordinarily UK residents earning a foreign income is for when they are employed or self employed, but I'm not sure which one I am, if any. If I had not moved back to the UK for health reasons, my income would be treated as normal employment income for tax purposes. Does this mean that for the purposes of NI payable, I am employed, even though I am signed off sick with zero capacity for work? Can you advise? If this is the case, how do I go about paying these contributions or at least getting credits? Is it the same as paying voluntary NI whilst living and working abroad, through filing an application via the CF38 form?

Hi,

If the foreign income you receive is in relation to a workers compensation insurance company this may be not classed as employment. You will need to contact our Self Assessment team for advice:

Self Assessment: general enquiries

Thank you.

Hi, Thanks for the response, but I have already called Self Assessments and they didn't really help me. I have spoken to so many departments, and even asked my tax accountant, but nobody seems to understand. I don't understand why this wouldnt be considered employment income as all the laws and HMRC guidance on these payments say they are. Specifically: EIM06450 - Employment income: sick pay and injury payments: injury payments - "Sums which are calculated on a weekly, monthly, or similar basis and paid for periods of absence from work, or for periods after the employee returns to work when he or she is unable to earn as much as they did before the injury, will usually be taxable as earnings in the same way as sick pay (or ordinary pay when paid after the employee returns to work)." EIM06410 - Employment income: sick pay and injury payments: sick pay funded by the employer - permanent health insurance -"The employer may provide the funds for sick pay directly or through a trust or insurance policy. Whichever method is used, the sums paid to employees are taxable as earnings within Section 62 or Section 221 ITEPA 2003." IPTM6120 - Sickness disability and unemployment insurance: tax treatment: employer’s schemes and other situations where someone else has paid part of the premiums: ITTOIA05/S743 -"Any part of the payments they receive that do not qualify for the exemption will be taxed as employment income." (I am not exempt as I did not contribute to the insurance premium payments) IPTM6110 - Sickness disability and unemployment insurance: tax treatment: main rules: scope of the exemption: ITTOIA05/S735 -"Payments from non-UK policies, which are not a UK source of income, are treated in the same way as payments from UK policies. There are no special or additional conditions that must be met for the payments to qualify for the exemption." In Australia, this type of income is also treated as employment income. All of the above laws and guidelines are in place, but under double taxation treaty, it falls under Article 17 and is considered a pension or annuity. Which laws should be applied to my income? Surely, if they are considered employment income, I should be paying NI on it now that I am ordinarily resident in the UK? Thanks

Just to add, my main concern here is that I am not contributing to NI and therefore won't qualify for benefits or pension if my workers compensation payments were to stop. And I can't apply for benefits to protect my NI record and eligibility because I haven't paid NI whilst living and working in Australia (until CF38 is processed which will take a year, and this may be too late). Is there any way I can get NI credits for the benefit (ESA for example) and not the actual payments? Thanks

Hi EJMorgan,
The questions around your  income from abroad and the policies quoted may be better placed to the subject matter experts/policy for the employment teams.
You have stated you pay UK tax via SA.
Without any information we can’t assist in this matter via this forum.
As previously advised you can write to HMRC providing the full facts of the matter.
If you call the helplines for employment status, they may offer a technical call back with security to discuss your situation.
We need you to make contact to enable anyone to look at the matter.
Please for the Employment Support Allowance question you will need to contact the Department for Work and Pensions to discuss any aspect of Employment Support Allowance.
Number- 0800 055 6688
Overseas - +44 (0) 0191 218 7652
Open - 8.00am to 6.00pm Monday to Friday 8.00am to 5.00pm Monday to Friday for overseas calls.
Thank you.