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Posted Tue, 25 Jan 2022 20:14:55 GMT by MarcoC
I moved to the UK in August 2020, and as I was tax resident in Italy for 2020 I had to declare my worldwide income and pay all national contributions for the entire year (including the part where I was already living in the UK, from Aug to Dec 2020). Now on my self assessment for UK 2020/2021 I need to also pay national insurance here in the UK on the same 5 months, apparently. Is there a way to claim relief from UK if I paid contributions in Italy already for the period August-December 2020, although I was already living in the UK?
Posted Wed, 02 Feb 2022 13:28:41 GMT by HMRC Admin 19
Hi,

We will need to make a liability decision and you need to write to the following address:

National Insurance Contributions and Employer Office
HM Revenue and Customs
BX9 1AN

You will need to provide your full name and the following information:                                     
  • your National Insurance Number
  • your date of birth
  • your most recent UK address
  • your address abroad – if applicable
  • the type of work you do
  • your company name and address – UK and abroad
  • where your contract is held
  • how often you work in the UK
  • your normal working pattern
Thank you.
 
Posted Wed, 02 Feb 2022 14:26:44 GMT by Gary Coombs
I wonder why you would worry about paying contributions in each country given how the EU rules on the coordination of social security work in relation to social security pensions, i.e. state pensions. When you reach state pension age in each country (the age may differ), you will be able to apply for a pension from each country in which you have paid contributions, calculated and paid according to their rules and the application of the EU coordination rules. Assuming you meet the requirements, you would then receive a pension from Italy and one from the UK. My understanding is that for your time in Italy your contributions will enable you to claim an Italian state pension under their rules when you reach their state pension age. Your UK years will be aggregated with your Italian years and may ensure you qualify for the Italian pension (e.g. if they have minimum years' requirements that you do not meet using your Italian years alone) or to increase the amount you receive, depending on how their rules work and what pops out of the bottom of the calculation that must be done under the EU coordination rules - and yes, the rules continue to apply if you were in Italy before the end of the transition period. You may also want to consider paying voluntary contributions to the Italian system now you have left the country, so that you can ultimately qualify for a higher pension from them in due course. You would need to research that with them... Your UK NI record will be used determine the amount of your UK state pension when you reach UK state pension age and your Italian years will be aggregated with the UK years under the EU coordination rules, which may get you past the minimum 10 years required for a UK state pension. Where you have gaps in your UK NI record, e.g. while you were in Italy, it may be beneficial to fill those gaps to increase the amount of your UK state pension. You would need to speak to DWP about that but at £800.80 per year for Class 3 voluntary NIC or £158.60 if you qualify to pay Class 2 voluntary NIC, you increase your pension by about £267 per year (all in 2021/22 terms), so you would want to do the maths and make your decision. Either way it would probably be beneficial to ensure that the year you are querying is fully paid up in the UK, assuming you are paying a part year in the UK anyway.

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