Updated as of January 2026:
Mat Bate, Chartered Wealth Manager can talk at length about the technicalities of portfolio construction, evidence-based investing, and the importance of cost control but he’s also a passionate advocate of Financial Planning and making sure your future financial self is in as good a shape as possible.
Part of this is ensuring that Private Capital’s expatriate clients are able to view their U.K. National Insurance while they and their spouses are offshore.
Following on from the Autumn Budget in 2025, Rachel Reeves, the Chancellor at the time, announced citizens who are no longer residing in the UK will not be able to pay voluntary national insurance contributions under class 2. This means after 6th April 2026, you can only pay voluntary national insurance contributions under class 3, for time abroad.
It is not clear to us yet whether back payments for time abroad before the 6th April 2026, can still be paid under class 2 voluntary national insurance contributions. If you currently pay class 2 National Insurance contributions from abroad, the HRMC will be writing to you from July 2026 if you are affected.
Firstly, check you can access your UK government gateway. This takes minutes and can be done via this link www.gov.uk/check-state-pension.
This will show what you will get at state pension age, assuming you work to retirement, and highlight any shortfalls in your NI contribution history.
Then the big question arises: ‘Should I pay Class 3 contributions whilst I am abroad?’
For the 2025-2026 tax year, class 2 contributions cost £3.50 a week and £17.75 a week for class 3 contributions. It’s a significant increase and it is possible a certainty it could increase in further years. Paying class 2 voluntary contributions was a luxury and it is no surprise to us that the Chancellor removed this privilege for citizens now working abroad. If you are considering paying class 3 contributions in the future, bear in mind the state pension could get means-testing in some shape in the future. This could be through a delayed retirement age or even a reduced/nil state pension.
Within your financial plan, having an updated cashflow forecast to include the increase in voluntary contributions can highlight the effect of an increase in contributions. Speaking to your financial planner can highlight whether this is still the right decision for your financial plan to achieve your goals.
Backdating payments may still be a viable option for you. The government announcement is not yet clear on the position of paying class 2 voluntary contributions for time abroad pre 6th April 2026. This may be a good option for you to complete if you can request to backdate payments, giving you more years and closer to receiving your UK state pension.
In some scenarios, you could backdate payments for more than 5 years, depending on specific circumstances. This would be given to you in writing by the HRMC once you complete and send the HMRC form CF38.
Under box 14, you can tick to request information about gaps in your National Insurance. The HMRC will write back to you to confirm if you are eligible to pay. Be aware that you will need to airmail your completed form back to the HMRC in the UK, and they will send you a letter in response to your eligibility. We have seen this take up to 18 months.
If you want to know more you can visit the U.K. government’s page on this here: https://www.gov.uk/national-insurance-if-you-go-abroad
Interested in knowing more about how you can plan for your future financial self, including financial planning and lifetime cashflow planning then you are most welcome to contact Mat or one of the Private Capital team by email or by calling +852 2500 5900.
Other blog posts you may find interesting:
Continue your search with other blogs below: