NIM33206 - Voluntary National Insurance contributions for periods abroad – Conditions to pay voluntary contributions for periods abroad not satisfied
The Social Security (Contributions) Regulations 2001 (SI 2001 No.1004) – Regulation 147
Where a person has been subject to UK legislation as an employed or self-employed person and has lived or worked in an EU, EEA EFTA country (Iceland, Liechtenstein and Norway), Gibraltar or Switzerland, the agreements the UK has with them provide for periods of residence or insurance in those countries to be treated as periods of residence or insurance in UK domestic legislation for the payment of voluntary UK NICs. There are similar provisions in the agreement the UK has with Turkey:
- Article 9 of Council Regulation (EEC) 1408/71 (applies to third country nationals legally resident in the UK for those who are in scope of the Withdrawal Agreement, the EEA EFTA Separation Agreement or the Swiss Citizen’s Rights Agreement).
- Articles 5(b) and 14 of Regulation (EC) No 883/2004 of the European Parliament and of the Council (applies to UK, EEA and Swiss nationals, for those who are in scope of the Withdrawal Agreement, the EEA EFTA Separation Agreement or the Swiss Citizen’s Rights Agreement).
- Articles 6(2) and 12 of the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland 2019 (only applies to British and Irish nationals).
- Articles SSC.7(c) and 13 of the Social Security Coordination Protocol to the Trade and Cooperation Agreement between the United Kingdom of Great Britain and Northern Ireland, of the one part, and the European Union and the European Atomic Energy Community, of the other part 2020
- Articles 9(b) and 16 of the Convention on Social Security Coordination between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation 2021
- Articles 9(b) and 17 of the Convention on Social Security Coordination between Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland 2023
- Articles 5(b) and 12 of the Agreement on Social Security between His Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland on the one part and His Majesty’s Government of Gibraltar on the other 2024
The Convention on Social Insurance between the UK and Republic of Turkey
Article 9 of this Convention provides that where a person is ordinarily resident in the UK, periods of insurance, not residence, in Turkey can be used to satisfy the NICs test for the payment of voluntary UK NICs.
Example
Louis has lived in France since birth and from the age of 18 to 25 he was employed and paying contributions into the French social security scheme. Louis moves to the UK and works here for 2 years, paying UK NICs, before accepting a job in Hong Kong for an employer based there. Louis wants to maintain his UK National Insurance record.
Louis does not satisfy the conditions of regulation 147(1) as he has only lived and worked in the UK for 2 years. However, the agreements the UK has with the EU provide for his residence and employment in France to be treated as periods of residence or insurance in the UK. This enables Louis to satisfy the conditions of Regulation 147(1) and he is entitled to pay voluntary Class 3 NICs while working in Hong Kong.
Example
Peter is a South African national who has lived and worked only in South Africa. Peter came to the UK in August 2023 to undertake a 6 month contract with a UK employer and paid Class 1 NICs. Peter resigns from this employment and returns to South Africa. Peter would not be entitled to pay voluntary NICs on his return to South Africa as he does not satisfy the conditions in Regulation 147.