Alex Thompson, Assistant Manager at BDO's Edinburgh office, is ATT and CTA qualified and has worked in employment tax for six years. Here, he explains what PGA Members need to know about UK National Insurance contributions when moving abroad.
Many people assume that once they leave the UK, their obligation to pay UK National Insurance contributions (NICs) ends. However, unlike income tax, NICs operate under a separate set of rules, and, in some cases, UK NIC liability can continue even after an individual departs from the UK.
Voluntary contributions
Even where compulsory NICs are no longer due, individuals may wish to consider making voluntary contributions to protect their entitlement to the UK State Pension and certain state benefits.
From 6th April 2026, most individuals living or working abroad can no longer pay voluntary Class 2 NICs for overseas periods. Instead, eligible individuals may apply to pay voluntary Class 3 NICs, subject to meeting the relevant qualifying conditions.
This may be available even where an individual is employed be an overseas employer and is no longer within the UK NIC system.
Although voluntary Class 3 NICs are more costly than the Class 2 previously available, they still offer the long-term value of protecting entitlement to the UK State Pension.
Individuals living abroad for several years may be able to contribute towards the NIC system for State Pension purposes, even after leaving the UK NIC system with voluntary contributions.
As a result, those who later return to the UK may have avoided creating gaps in their National Insurance record and remain on track for State Pension entitlement in retirement.
More information in respect of eligibility criteria for applying for Class 3 NIC can be found on the Gov website here.
Applications to pay voluntary National Insurance contributions can be made using a form CF83 via the GOV.UK website.
