Mechanism for paying class 2 NI contributions from abroad

I want to pay class 2 NI contributions. I am living abroad. Where do I specify the number of years that I want to pay for? Do I add up all the contributions and pay that amount ? Do I include the number of years in the reference or do I write to HMRC to let them know what the contributions mean ? I plan to pay from 2006 to 2023. I have attached the information from the website below: From what I can determine from the website, I can do an IBAN transfer with the following bank information: account number (IBAN) - GB49 BARC 2020 4830 9447 93 Bank Identifier Code (BIC) - BARCGB22 account name - HMRC NIC receipts and using the following reference : Use your National Insurance number followed by ‘IC’, your surname then your initial so : If your name is Anne Jones, you’d write the reference as QQ123456AICJONESA Many thanks

I have noticed that when I attempt to set up an IBAN transfer of GB funds from my Euro account, there is no 'Reference field' into which I can put my National Insurance number ( as per the above). The fields I have available to me are 'Reason for payment' and 'Message to payee'. Which of those fields do I use so that HMRC allocates the funds to my National Insurance number? I would be interested to know which of these fields are visible to the recipient, in this case HMRC. Many Thanks

Hi

Provided that you’ve been in touch with our International Team already and they have advised that you may pay the voluntary class 2 National Insurance contributions whilst overseas, then you may pay for multiple tax years in one go or you may pay one tax year at a time.  When we receive your payment we will use our judgement to allocate it to your National Insurance account so I would ask that you check your Personal Tax Account to make sure that we’ve dealt with your payment as you wished.  If we have not then please just let us know and we’ll amend it.

Before making any payment of voluntary contributions you should check with Future Pension Centre (via Check your State Pension forecast) to ensure that it is worthwhile for you to do so.

Thanks

 

Hi Thanks for the response. Could I get clarification on which IBAN fields are visible to HMRC on an International transfer so that HMRC can correlate the payment to my National Insurance number. As per the previous message : The fields I have available to me are 'Reason for payment' and 'Message to payee'. Thanks.

Just curious...has the writer of this question sent in their CF38 form and been advised that they are eligible to buy back years 2006 - 2023? That's the required process as I understand it...and the response from HRMC should have been confirming what years are eligible to purchase back AND how to make that payment from abroad.

Hi there, I am a non-resident landlord renting out 2-3 properties with an annual profit varied between £9,000 to £13,000. According to the HMRC ‘Pay Class 2 National Insurance if you do not pay through Self-Assessment’, should I make NICs Class 2 payment if the profit is £12,570 or over? Since I am a non-UK resident living overseas and I have never had any NI number/record before, please advise how to apply for the Class 2 payment. Thank you very much.

I think the " How to make the payment from abroad has a few hidden subtleties especially when paying from a Euro account to a Sterling one". If you pay in Euro then you will have to pay a little more to ensure that when it's converted to Sterling, it's sufficient to cover the exchange rate for the NI contributions. In addition you can use the Reference field as proposed by HMRC. Job done if you haven't either over estimated or underestimated the Euro payment to HMRC. On the other hand if you pay in Sterling from a Euro account you can pay the exact amount because you are buying Sterling at that point. The disadvantage is that you now have NO Reference field. Instead you have to hope that HMRC will be happy to accept your NI number in the "Message to Payee " field. Job done as long as HMRC can use the "Message to Payee" field. As far as I can tell most people pay in Euro and "hope for the best " with the exchange rates, by paying a little bit more.

Hi luketoretire Thorn,

You must apply to pay voluntary National Insurance contributions (NICs) while abroad by completing the CF83 application here:

Apply to pay voluntary National Insurance contributions when abroad (CF83)

If you are accepted to pay voluntary NICs you will be notified of all shortfalls on you NI record from 2006-2007 tax year to 2022-2023.

Prior to making a payment you must have confirmation from the Department for Works and Pension that paying voluntary NICs will improve your State Pension entitlement.  

Please note you have 18 digits for the reference for the payment and it must be in the format of your NI number followed by IC, then surname and initials. Do not include anything else in the reference as this may delay the payment reaching your NI record.

We would use the option that you would normally use for any reference when making payments, we do not think leaving a note would be this option.

You must also be mindful of any charges, including exchange rates if not making sterling payments. 

Thank you.
 

I do not have an English bank account due to Brexit rules so can you please confirm if it possible to pay using a sterling cheque provided by my mum y if do what details I need to provide

https://www.gov.uk/pay-class-2-national-insurance would suggest that this is an option. From what I can see you just need to put your NI insurance number on the back of the cheque. But it's probably best to clarify with HMRC. They are very helpful. Average wait times are between 20mins and 30 mins. But if your mum has a UK bank account you could just ask her to do an IBAN transfer and include your NI number in the reference field as per the above correspondence from HMRC.

I do not have an English bank account due to Brexit rules so can you please confirm if it possible to pay using a sterling cheque provided by my mum y if do what details I need to provide

I completed CF83 in January requesting to pay 3 years Class 2 (2009-12) from when I was in the USA (per guidance from FPH). I reach state pension age next month. PT Operations NE has replied stating it's too late to pay voluntary NI contributions for any tax years before the current one. I have searched everywhere and cannot find any reference to it being "too late" as I should be able to pay back to 2006 until the extended deadline in 2025. I also contacted FPH who were unsure why this response had been made. I'm frustrated as voluntary contributions are the only part that doesn't get deducted from my federal pension.

Hi nr8209,
We can confirm that it is possible to pay voluntary National Insurance contributions from the 2006-2007 tax year which should be received by 5 April 2025.
As you’ve advised that you reach State Pension Age next month you may wish to pay them before that date so that you can get the best pension as soon as you reach your pension age.
If the Future Pension Centre have advised that it would be worthwhile to pay certain tax years then we should be able to accept these.
May we ask that you call our National Insurance Helpline on 0300 200 3500 (from the UK) or +44 191 2037010 (from overseas) and they will be able to check your National Insurance account and the advice given to you in response to your CF83 application form.
Thank you. 
 

Hi mukjizat chan,
We cannot advise whether you are able to pay UK NICs on this platform.  
You must write into the department for a liability decision.  
You can find more information on the GOV.UK website:
GOV.UK


 

Hi Sharon2,
I can confirm that we will accept payment of your voluntary National Insurance contributions from your mum.
When she sends her cheque she should include a note giving:
-    Your name
-    Your National Insurance Number
-    The tax years that you’d like to pay for
-    If she would like a receipt then she should request one in the note
-    She should write your National Insurance Number on the back of her cheque
Thank you. 

 

I'm happy to see Admins replying here, However, I was informed that if we are paying from OVERSEAS banks then there is no 18 digit reference number and we just put out NI number and surname (as shown in the opening post) as the reference. I hope this is true as that is what I have done. My record still does not show that I have paid, but it's only been a few days. How long does it take to show on my NI record that I have paid?

Hi RebeccaB1984 Bee,
There is the option for payments from abroad to use a reference of NINO followed by ‘IC’, surname then initial.
If limited to a certain amount of characters, use NINO followed by ‘IC’ and as much of the surname as possible.
Example - If your name is Anne Jones, you'd write the reference as QQ123456AICJONESA
There is currently a wait on allocating payments but customer accounts should be updated within 8 weeks from receipt of payment.
Thank you.

According to the guidelines the reference for voluntary NIC from overseas should be in the following format for a person named 'A JONES' whose NI number is QQ123456A as follows : QQ123456AICJONESA. In my case my surname is longer than 'Jones' and hence I only manage to include part of my surname. However, my bank allows me to put in more that 18 digits and I could include all of my surname and first name. Is there an absolute limit of 18 digits for the reference number when using the above system for voluntary NICs from overseas?

I am currently in employment abroad and I am paying Voluntary Class 2 NICs. But, if I take early retirement at 60 whilst abroad, am I still eligible to continue to pay at the Class 2 rate, or do I have to pay Voluntary NICs at the Class 3 rate for my age years 60-67?

Hi classwho,
Please use your use NINO followed by ‘IC’, surname then initial.
If limited to a certain amount of characters, use NINO followed by ‘IC’ and as much of the surname as possible.
Thank you.