Class 3 Pension Payments

Hi - I need to understand the logic behind what I have been informed about my pension. I was ordinarily resident in the UK since birth, I moved to South Africa in 2003 and am now trying to make up my pensions shortfall. I need to make up 6 years and have been told that I do not qualify for Class 2, and I must pay Class 3. The reason being is that I was not 'working' or drawing 'unemployment benefit' 'immediately' before I left for South Africa. The reason I was not doing so was becasue I had was spending some time recovering from completing my PhD and a broken back from a car accident. I don't understand how not working 'immediately' (there is no definintion of what 'immediately' means in this context) or drawing benefits is now something that I am to be penalised for. It's bizarre, we are talking about thousands of pounds in difference between Class 2 and Class 3 voluntary payments, all because I did what I thought was the ethical thing, and not get benefits. Please will soemone explain the logic here - not the rule. I need to know WHY this rule exists? Also, can I appeal the decision? Thanks - 

Name removed admin 

Hi,

We are unable to give a decision about your enquiry on this forum.  

The criteria to pay voluntary NICs while abroad is UK legislation and is covered under article 147 of the Social Security (Contributions) Regulations 2001. We have to adhere to these rules which are stated in UK law. 

Although we do look at an individuals record as a whole we must look at the period immediately prior to leaving the UK. 

You may wish to appeal the decision made, you must write to HMRC and request an appeal to the decision made for your case.

There are 3 stages in the appeals process: 

• Informal
• Formal
• Decision

You must provide your name, address, DOB and NI number in your letter of appeal.
You must provide a full explanation of the appeal to be made.
Provide any evidence that may support your right to an appeal.

More information can be found on here: 

Guidance on Social Security abroad: NI38

Thanks
 

Why do you think you would qualify for class 2 NI, this is for self employed people. If you want to voluntarily pay for missing years, then class 3 national insurance is the way to do this and the way everyone else, myself included has to do it.

Alan Jones: Class 2 NI is not just for self employed people overseas...it is also for those employed by others. Nonetheless, DrEgg is asking about the reason he was denied as it pertains to the "working immediately before leaving the UK" portion of the assessment...and he's right to ask for a definition of this as it's a very vague condition - with no information on the application form as to what it means.

Dear Sir/Madam, I worked for BBC prorior to leaving Britain for good for Poland in 2003. Since then I have been working and living in Poland only, coming for short 1 week holidays to Britain. I just filled in online the CF83 form and am waiting for a reply. I have decided to pay voluntary contributions for the 17 years I am allowed to do so. The deliberations on the complicated rules (class 3 or class 2) may take many months. How can I ensure I will not miss the deadline in April 2025? I was told that when the form is submitted (mine on 23.04.2024), I will be allowed to pay the voluntary contributions even after the above mentioned deadline? I wish I could just get a short answer plus the account number to pay into, even if it means paying more for some/all years. Otherwise I am so worried the income I am counting upon in my retirement (it comes on 18.02.2025) may be restricted jut because there was a debate how much I pay. If I am entitled to pay (the Gateway confirms it!), please let me pay before the deadline. This would be logical. Please explain if I need worry about the deadline or not. Marek

Hi rybara Rybarczyk,
As long as HMRC has received your CF83 application before the April 2025 deadline date that means you have hit the deadline.
Even if you don’t get a response after the deadline date, HMRC will take this into account and you will still be allowed to voluntary pay after April 2025.
The details of the amounts you will need to pay and how to pay will be on the correspondence letter sent to you.
Thank you.