What is form CF83?
This is the Form you use to apply to pay voluntary Class 2 or Class 3 National Insurance Contributions (NICs) when you are working abroad.
What are National Insurance Contributions?
NICs are your contribution to the pot of money assigned to state pensions and some social security benefits. The amount of state pension, bereavement benefits and some social security payments is dependent upon how much you have paid in over your working life. There are 6 different classes of NICs and your employment type determines which you are liable to pay.
You could be owed a national insurance rebate
If you work outside the UK and pay Class 1 NICs, you may be owed a national insurance rebate. You can find out more about this on our guide about form CA307 claim for national insurance.
Why would I volunteer to pay NICs in the UK when I don’t live there?
Some people choose to continue to pay NICs when they are working abroad in order to protect their right to full state pension, some social security and bereavement benefits.
Does this apply to all UK taxpayers that work abroad?
No, it depends on the duration of your work abroad, the country you are moving to and the type of employment you have.
There are separate regulations for: members of the Armed Services and their families when they are posted abroad, mariners and civil aircraft crews.
If you are going to work in the Isle of Man or Northern Ireland, then the systems for making social security payments are linked and so you don’t need to apply to make voluntary contributions. Likewise, if you are moving to a country that has a social security agreement with the UK or a European Economic Area country.
Which class of NICs do I pay?
For the first 52 weeks that you are employed abroad, then you must pay Class 1 NICs if: you were a UK resident immediately before you started working abroad, or you are classified as ‘ordinarily resident’ in the UK, or if your employer has business premises in Britain.
If you are then opting to make voluntary contributions, you can either pay Class 2 or Class 3 NICs.
Class 2 NICs
This level of National Insurance is paid by people who are employed or self-employed abroad and have paid Class 1 NICs for the first 52 weeks of work. The conditions for eligibility include: that you were a UK taxpayer just before you started working abroad, or that you paid NICs to a particular total for 3 years before you moved, or that you worked in the UK at any time before moving abroad for 3 consecutive years.
Class 2 NICs contribute towards: state pension, bereavement benefits and other state benefits (such as Employment and Support Allowance).
Class 3 NICs
This level of contribution covers the cost of your state pension and your partner’s right to bereavement benefit (civil or married). These can be paid to you wherever you live. You can pay Class 3 NICs if you meet the following criteria: you have paid Class 1 NICs for the first 52 weeks of overseas work, you have paid a particular amount in NICs for the 3 years prior to moving abroad, or you have worked in the UK for 3 consecutive years before working abroad. (Time spent in Turkey or in another EEA country can count towards this time period.)
How do I apply?
You use form CF83 for applications to pay either Class 2 or Class 3 NICs. You will need all your financial and employment records. You can use this HMRC voluntary national insurance page to guide you to the correct form for you.
Good to know
Hopefully, this brief outline has clarified your position regarding the payment of voluntary National Insurance contributions when you are living and working outside the UK. The full regulations include much more detail and cover every employment eventuality.
At Tax Rebate Services, we specialise in helping UK non residents, expats with UK tax issues, and others who have left the UK.
