The budget by Ms Reeves from accounts has a nasty shock in it for UK expat workers. 

 

Expats will no longer be able to pay the cheap Class 2 rates (around 190 pounds a year) and instead will have to pay the nasty Class 3 rates (around 940 pounds a year). 

 

In addition, the qualifying period for paying rises from 3years employment in the UK to 10 years continuous employment in the UK. 

 

This comes into effect in April, so you have a few months to buy cheap while you still can. You are allowed to backdate up to 5 years. 

 

To get a full pension you need 35 years, and you must have 10 years to receive any pension at all.

Damn 🤧

 

Suppose I'm lucky in one way as just paid 12 years' worth of class 2 but still have another 12 to pay to get to the magic 35

3 minutes ago, GanDoonToonPet said:

just paid 12 years' worth of class 2

I just paid around 10 years worth as this year was the last chance to backdate up to 15 years. 

 

The new price is a nasty shock but it probably is still worth it. 

28 minutes ago, Gaccha said:

I just paid around 10 years worth as this year was the last chance to backdate up to 15 years. 

 

The new price is a nasty shock but it probably is still worth it. 

 

I did it the same way. Lucky as I just happened to be back in the UK at the beginning of this year and only found out about it then.

 

12,000 GBP is still worth it for me, I guess, as will break even after the first year. Still a big chunk though 🤔

 

Also, the qualifying period seems to include living in the UK for 10 years not just working there.

 

Quote

This is not only a rise in cost. It fundamentally changes access to the State Pension:

 

To qualify to make any voluntary contributions while overseas, you must have lived in the UK or paid National Insurance for at least ten years. The previous threshold was three.

 

No new Class 2 contributions will be accepted from overseas

 

Existing qualifying years are protected

 

https://www.expattaxthailand.com/uk-budget-expats-2025/

It's only for 3 years then they'll be out. Talk about panic over nothing.

 

It's like the EV milage tax coming in 2028, they'll be gone before it happens.

53 minutes ago, BritManToo said:

It's only for 3 years then they'll be out. Talk about panic over nothing.

 

It's like the EV milage tax coming in 2028, they'll be gone before it happens.

 

That may or may not be the case, but new governments very rarely reverse revenue-raising policies of the previous ones, especially if, like this one with expats, the target is small and of little political importance.

 

After a year or two, such policies become entrenched and part of the new prevailing fiscal landscape.

 

In fairness, this is a loophole that expats have been able to take advantage of for decades.  They were ridiculously low cost, and it seems to me prudent to close it now (especially as I'm all paid up thank you very much . . . )

 

They may make the state pension means tested anyway, i have 3 years to pay, I won't be paying that until just before claiming