National Insurance

[gadget123]

I understand that if you are employed on a foreign ship you do not have to pay NI, but you can choose to pay it.

Looking at this I presume that would mean that we would be paying class 3 contributions if we chose to. However is there any point as it does not contribute to benifits other than the state pension which I doubt will still exist when I retire (or at least I'll have to work until 75)

http://www.hmrc.gov.uk/ni/intro/benefits.htm

So is there any point paying it?

[chris]

good question

[laura]

I think it can causes problems for maternity pay... but I?m guessing that?s not a problem for most people on this site....

[gadget123]

I think it can causes problems for maternity pay... but I?m guessing that?s not a problem for most people on this site....

It does but there doesn't seem anyway to solve that as maternity allowance isn't covered by the voluntary NI contributions as far as I can see same as JSA etc.

[bobofinga]

I'm also wondering about this as I've just changed companies from a British flagged to Bermudian flagged company...

[HolyNougat]

I pay voluntary NI contributions.
You need 30 years worth to qualify for the state pension.
My thinking behind it is that I paid full NI for 11 years while working for UK company so I only need another 19 to qualify for the pension (I work for an American company now) - the voluntary contribution is either 13 (Class 3) or 3 (Class 2) pounds a week.
I would suggest speaking to a tax adviser before decided one way or another - at the end of the day if you pay into private pension, you get tax relief, even if you don't pay income tax, so that may be a better way of saving.
Obviously you should not plan on relying on the state pension only when you retire either way.

[GuinnessMan]

I think it may have an impact on your entitlement to NHS care, but not 100% on that so don't quote me...

[bobofinga]

What I don't understand is all these junkies and bums who do nothing but scrounge off the country and the benefit system and pay no N.I still seem to get all the cash and treatment they need?

[gadget123]

I think it may have an impact on your entitlement to NHS care, but not 100% on that so don't quote me...

No it doesn't. Its only certain state benefits it affects.

[ETwhat?]

Given that its not a huge amount of money and that while the state pension may not be the same as it is now, it will still exist (probably) and will be more than the weekly payments so why not. Also if you at some time end up working for a British company or shore based in the UK and end up paying them anyway you may as well get ahead on the game.

As for people mooching off the system given we rarely pay tax I wouldn't shout too loudly as people tend to think that is unfair

[HolyNougat]

Imagine not paying 3 quid a week now, going ashore later in life paying full rate NI for 20 years, reaching retirement age and finding you are 6 moths short of your 30 years minimum requirement. I am just going to pay until I have my 30 years done, then stop if I can - or if not, I won't mind.I sort 'like' paying it as it makes me feel a little better about having NHS cover... even though you get it without paying.

[GuinnessMan]

No it doesn't. Its only certain state benefits it affects.

Are you 100% on that? There was something I was reading for UK citizens living abroad that they wouldnt be eligible for NHS care because they don't pay NI?

[bobofinga]

Are you 100% on that? There was something I was reading for UK citizens living abroad that they wouldnt be eligible for NHS care because they don't pay NI?

I'm pretty sure that isnt true as anybody can get free NHS... even none EU.

[EH75]

Are you 100% on that? There was something I was reading for UK citizens living abroad that they wouldnt be eligible for NHS care because they don't pay NI?

Sounds like one of those scare stories that crop up in the Daily Mail every so often.

[chris]

The nhs is funded out of general taxation so as non income tax paying seafarers, we still contribute when we pay vat and all the other taxes.