27 May 2026
HM Revenue and Customs (HMRC) has added a reminder, in the Agent Update for May, of the changes to the way individuals living or working abroad can maintain their UK State Pension entitlement through voluntary National Insurance Contributions (NICs).
These changes will affect both the current contributors and those looking to make contributions in the future. Employers and advisors should ensure that any affected individuals are aware of the implications.
For tax years 2026-27 onwards, individuals will no longer be able to pay voluntary Class 2 NICs for periods spent abroad.
Class 2 contributions have historically provided a route to maintaining State Pension eligibility, particularly for self-employed individuals working overseas. Going forward, individuals who wish to make voluntary contributions from abroad will need to rely on Class 3 NICs. However, stricter eligibility rules will now apply.
To qualify, individuals must meet at least one of the following criteria:
- have ten years of continuous UK residency
- have paid at least ten years of NICs.
Individuals who are currently paying Class 2 contributions while abroad should be aware of the following:
- HMRC will contact affected individuals from July 2026
- if contributions are paid via Direct Debit, these should not be cancelled
- HMRC will collect the final payment for the 2025-26 tax year on 10 July 2026.
After this date, alternative arrangements may need to be considered. Importantly, the changes do not affect the ability to make voluntary Class 2 NICs for tax years prior to 2026-27. This means that individuals could still review their contribution history and fill any gaps for earlier years with the Class 2 NICs rates.
Early awareness and proactive planning will be key to ensuring affected individuals can make informed decisions about maintaining their UK State Pension entitlement.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.