NIM33208 - Voluntary National Insurance contributions for periods abroad – Entitlement to pay voluntary contributions for periods abroad after a 52 week Class 1 liability ends
The Social Security (Contributions) Regulations 2001 (SI 2001 No.1004) – Regulation 146 (2)(b)
Where an employed person satisfies the conditions of Regulation
146(1) SSCR 2001 and Class 1 NICs are or have been payable for their first 52
weeks of overseas employment under Regulation 146(2)(a) (see NIM33530 for further information),
they may pay voluntary Class 3 NICs for any year they are outside of the UK
from and including that in which the overseas employment begins until they
return to the UK to ensure the tax years are qualifying for State Pension
purposes.
Alternatively, prior to 5 April 2026 they could choose to pay voluntary Class 2 NICs after a 52 week Class 1 liability period provided, they satisfied the conditions of Regulation 147 SSCR 2001 (see NIM33202 for further information).
Example
Brian is sent by his UK based employer to work in China for 4 years. Brian is liable to pay Class 1 NICs for his first 52 weeks of overseas employment under Regulation 146(2)(a) SSCR 2001 because
- his employer has a place of business in the UK; and
- he is ordinarily resident in the UK (see NIM33555 for further information); and
- immediately before commencing the employment abroad, Brian was resident in the UK
Brian is entitled to pay voluntary Class 3 NICs for the remainder of his absence abroad to maintain his National Insurance record for State Pension purposes.
Example
Hamid has lived in Morocco since birth. Hamid moves to the UK, he works here for 9 months and becomes ordinarily resident, before his employer sends him to Hong Kong for 3 years.
Hamid is liable to pay Class 1 NICs for his first 52 weeks of overseas employment under Regulation 146(2)(a) SSCR 2001 because:
- his employer has a place of business in the UK; and
- he is ordinarily resident in the UK (see NIM33555 for further information); and
- immediately before commencing the employment abroad, Hamid was resident in the UK.
Hamid does not satisfy the conditions of Regulation 147(1) as he has only lived and worked in the UK for 9 months. However, he is entitled to pay voluntary Class 3 NICs after his Class 1 liability period under regulation 146(2)(b) SSCR 2001 for the remainder of his absence abroad to maintain his National Insurance record for State Pension purposes.