Early Retirement and Continue to Pay Class 2 NI Contributions

L

LiferT

Registered User
Messages
29
Hi All

This is a question about retiring in Ireland at age 62, drawing income from and ARF and continuing to pay class 2 NI payments until age 67 when UK pension will be available for drawing.

Is it possible to continue paying UK national insurance contributions at the lower class 2 rate while drawing income from an ARF?

Although ARF income could be considered a form of self employment (Class S insurance in Ireland), does this disqualify the recipient from continuing to pay class 2 NI contributions?

Many thanks

LT
 
This has been asked before. ...

3CC said:
Thanks ohrose. Yes I have seen that thread and in fact that's where I learned that you could retire early and that PRSI paid on income from an ARF would count towards the contributory state pension here in Ireland.

My question is really whether the UK authorities would accept ARF income as a basis for paying voluntary NI contributions at class 2 rather than class 3?
Click to expand...
 
Hi Ohrose

Thanks for the link. I don't think that the contributor on the thread received an answer to their query unfortunately.

LT
 
I assume so.

HMRC does not seem to carry out any checks on your activity once it’s granted your request to pay Class 2.
 
Dr Strangelove said:
Checks on what?

If your contribution record is there and you still have a pulse you get the pension!
Click to expand...
Checks that you remained eligible to pay the lower cost class 2 contributions for the entirety of your voluntary NICs and not just those up to the point when you are initially deemed a class 2 contributor ie submission of CF83 and employment record up to that point in time.
 
Kev1964 said:
Checks that you remained eligible to pay the lower cost class 2 contributions for the entirety of your voluntary NICs and not just those up to the point when you are initially deemed a class 2 contributor ie submission of CF83 and employment record up to that point in time.
Click to expand...
From all the evidence HMRC can barely process the volume of claims they have, and do minimal checks on eligibility at time of application.

I have never heard of them checking again when it comes to pay the pension. If they do, the worst that will happen is that you will be forced to pay the difference.

Everyone’s risk tolerance is different though!
 
Dr Strangelove said:
From all the evidence HMRC can barely process the volume of claims they have, and do minimal checks on eligibility at time of application.

I have never heard of them checking again when it comes to pay the pension. If they do, the worst that will happen is that you will be forced to pay the difference.

Everyone’s risk tolerance is different though!
Click to expand...
Yes fair comment but maybe when the current pressure on processing of claims eases (when the 2025 deadline is past) there may be capacity to make additional checks.

This is a question I've asked on here a few times without an answer from someone who has experienced the process through to benefit payment stage. To me it's an interesting aspect to a topic that has been otherwise extensively debated.
 
DannyBoyD said:
A lot of information can be validated by numerous datasets available to HMRC
Click to expand...
Does HMRC have routine access to the employment status of people outside the UK?

Even if it has access to DSP/Revenue records a Class S payment of >€500 will suggest employment.

If I was the OP I would sleep easy.
 
You must log in or register to reply here.
Back
Top