Nationla Insurance contribution for UK Expacts! The Facts

By: Ross Naylor

There seems to be a lot of confusion regarding the payment of National Insurance Contributions and the benefits of the state pension for UK Expats.

What I want to achieve with this post therefore, is to give you an idea of the basic facts regarding the basic state pension and the necessary steps that you would need to take, should you want to make contributions on a voluntary basis and/or make up missed payments.

Armed with this information, you will then be in a position to make an educated decision on how to proceed.

Basic Facts:

To achieve a full basic state pension you need to have achieved a certain number of qualifying years. A qualifying year is a year where one of the following applies:

• you have sufficient income to pay National Insurance Contributions

• you are treated as having paid National Insurance Contributions

• you are credited with enough National Insurance Contributions

If you are a man born after the 6th of April 1945 or a woman born after the 6th of April 1950, then you need to achieve a total of 30 qualifying years in order to achieve the full basic state pension.

For tax year 2011/2012, the full basic state pension will be GBP102.15 per week. This will increase annually by the highest of prices, earnings or 2.5 per cent.

If you have less than 30 qualifying years, your pension will be reduced on a pro rata basis. E.g. if you only had 15 years, you would get GBP51.08 per week (15/30 = 50% of GBP102.15).

Step 1 - Find out where you are now.

Your first step should be to contact the state pension forecasting team in Newcastle and ask for a pension forecast.

This will tell you the number of qualifying years that you already have as well as the level of state pension that you can currently expect.

Their telephone number is +44 191 218 3600. If you contact them, they will then send you the completed relevant form for you to sign and return to them. (Remember, as with all communications with HMRC, to have your NI number handy when you call.)

Alternatively, if you want to speed the process up, you can download the relevant form from their website and send it directly to them. The address to send it to is:

State Pension Forecasting Team, The Pension Service, Tyneview Park, Whitley Road, Newcastle upon Tyne, NE98 1BA, England.

Allow them a few weeks to get back to you.

Step 2 - Make Voluntary Contributions

The next step, if you don't already do so, is to start making regular voluntary contributions. There are 2 types of contribution that you can make, either Class 2 or Class 3.

To qualify for Class 2 Contributions, you must have been 'ordinarily' employed or self-employed immediately before you went abroad. (If you are in doubt as to whether you qualify, contact National Insurance Contributions - International Caseworker Team on +44 191 225 4811).

If you don't qualify for Class 2, then you need to make Class 3 contributions.

Class 2 contributions have the following benefits:

• they count towards your State Pension when you retire

• they entitle you to the Employment and Support Allowance (previously known as Incapacity Benefit) and bereavement benefits when you return to the UK

Class 3 contributions have fewer benefits. Namely, they don't entitle you to the Employment and Support Allowance when you return to the UK.

In addition, Class 3 contributions are more expensive. For Class 2 contributions, the payment is equivalent to GBP2.50 per week (2011/2012). Class 3 payments are equivalent to GBP12.60 per week (2011/2012)

As you can see, wherever possible, it makes sense to pay Class 2 Contributions.

To commence contributions (Class 2 or 3) you need to complete the form CF83, which can be found on the last 2 pages of the NI38 document. You can find a copy by Google searching "NI38".

Payments can be made monthly by Direct Debit or with an annual payment.

Step 3 - Make Up Missed Years

If you haven't been making any contributions for some time and still do not have 30 qualifying years, then you can make up missed years going back for the last 6 years. Your State Pension Forecast (mentioned above) will tell you how much you need to pay to make up each of these years.

Instructions on how to make payments for these missed years will be on the forecast letter.

Ross Naylor is an experienced, UK qualified financial adviser. He has been providing common sense financial advice to British expatriates for the past 10 years.

He writes on a range of financial issues in a regular magazine column, ezine and his blog - http://www.aesinternational.com/rossnaylor/blog.

Article Source: http://EzineArticles.com/?expert=Ross_Naylor

Article Source: http://EzineArticles.com/6298233

Insurance Guide to the right Path

By: Wayne Holtt

The right kind of insurance will protect you and your family during unexpected circumstances like emergency surgery, sudden accident or out of work for a long time. Insurance should be like a life jacket that saves you from sinking and if it doesn't work at the right time then there is no use in using it. So, it is very important to choose the best insurance policy only after completely analyzing your situation, because analyzing your situation would help you find a profitable insurance policy. For example, if you have health problems, then wisely choose some best health insurance policy because it may help you financially during extreme health problems. Insurance policy's terms and conditions vary depending upon the location, state and country. In Charlotte County, if you have taken out a mortgage to help finance the purchase of a home, then it is typically required that you also have homeowners insurance.

Insurance is quite complicated, because prices for the same insurance coverage can vary widely from company to company. So, it's important to shop around before you choose an insurance policy. Investigating the limits of coverage and the specifics of the individual policies with a licensed insurance professional will be an additional boost while you are on the hunt for a best policy. Presently, many insurance companies provide senior insurance that supports them instantly by providing financial assistance during emergency situations.

However, finding a profitable policy is always a difficult task due to the different insurance companies, policies, terms and conditions. Are you facing all these difficulties? Don't worry; some effective tips for finding out a best insurance policy are listed below:

- Working with an independent agent can make the searching process easier, by allowing you to compare different company's policies at one time.

- Reference obtained from your family members, friends and co-workers will help you to ease your searching process. Reference will help you find an insurance company that charges fair rates, processes claims quickly and provides instant pays.

- Collecting reference before you start calling sales agents can save you a lot of time and irritation.

- It is very important to read the policy thoroughly, to make sure that you got the amount of coverage you want, without any surprise exclusions or limitations. Many policies include a free look period, during which you can cancel your policy without paying a penalty.

- If you get the life insurance policy for the whole family, then you can get affordable life insurance.

- Always remember to check out your coverage regularly.

- When you are fit and healthy, you can get affordable life insurance.

- If the cost of building a home in your neighborhood has gone up, you should increase your homeowners' insurance coverage.

All these tips would help you to choose a profitable insurance policy.

Port Charlotte insurance provides different types of insurance policy such as homeowners insurance, car insurance, health insurance, senior insurance and much more that are common in Charlotte County, Florida and the United States.

Article Source: http://EzineArticles.com/?expert=Wayne_Holtt