Can anyone explain to me how ni contributions are calculated while working abroad in a country with no reciprocal arrangement?
The government website tells me that I need to carry on paying for the first year, but bon how it is calculated.
Do I carry on paying the same level as my current monthly contributions but out of my Australian salary (paid in Oz)
Or is it now calculated based on my gross Australian salary?
I have a feeling it's calculated from gross Australian salary but deducted from my net salary. If this is the case it's a huge outgoing!
Had anyone been in this situation and knows what's what?
My offer package includes tax advice from KPMG but to be able to use it I have to accept the offer. Catch 22 when this is something I'm factoring in when reviewing the offer!
Let me know when you find out!
Based on some research I’ve been doing on this, I would expect it to be calculated on your Australian salary, but I think it depends on the exact situation.
Are you you still working for a UK employer but being posted/seconded to Aus, or is it a new job there?
That *might* change whether it’s taken off before or after tax...
Paying in for what is the question....
I checked mine after 6 years overthere and I have enough years contributed according to the HMRC Checker.
If I remember while in Aus you will pay superannuation which you can claim back if you leave. There is an option to pay NI out of your own pocket direct to hmrc.
and is this what you are reading?
https://www.gov.uk/national-insurance-if-you-go-abroad
Answer being it really depends on who you are working for, how you are being paid etc. and what you living arrangements are
I am in spain but pay voluntarily into uk ni to max out my pension qualifying years. It keeps going up but I think last year cost me c 700 gbp. You can work out the payback as to whether it is worth it, I think it was living for 3 years in retirement.
Mike, yes that's it.
Moving offices for 2 years, will be paid locally. Company has UK offices and I'm coming from the UK and am a normal uk resident.
Poolman it's different for EU countries or others with reciprocal arrangements
Ok thanks that is correct, sorry I assumed anyone could do it.
Company has UK offices and I’m coming from the UK and am a normal uk resident.
If you are working locally, paid locally you will be an Australian resident for the time you are out there. Unless you have skipped some years missing 2 won't be a big issue. You can claim your Super (Pension contributions which are a min employer contribution of about 10% but you pay about 35% tax on them at the end)
There is a god UK Expat forum I used for a few issues - just google them and somebody will be able to clarify.
Oh and I think what you are looking at is how long you have to spend in a country to be resident for tax purposes I think it's 6 months