The November 2025 UK Budget had a surprise in store for expats living overseas.
Both the rates for National Insurance Contributions for time abroad, and the criteria for eligibility are changing.
From April 2026, the new rules start, however at the time little guidance was given on how this would be implemented.
HMRC have now provided some further clarity.
What’s the new eligibility criteria for UK NICs?
For new applications to pay Voluntary National Insurance Contributions, for time spend abroad after 5th April 2026 you will need to have either:
- Lived in the UK for 10 years in a row.
- Or, paid at least 10 years of National Insurance contributions in total.
Previously both requirements were only 3 years, so it’s a big difference.
However, if you’ve already been paying National Insurance – there are transitional arrangements incase you wouldn’t ordinarily qualify under the new criteria.
If all of the following are true:
- You applied to pay voluntary Class 2 or Class 3 contributions for the 2024 to 2025 or 2025 to 2026 tax year on or before 5 April 2026.
- You pay or have paid the voluntary contributions you applied for on or before 5 April 2027.
- You apply to pay Class 3 contributions for the 2026 to 2027 tax year on or before 5 April 2027.
Then you can still make Voluntary Class 3 contributions whilst living overseas, even if you wouldn’t qualify under the new rules.
You may need to submit a new application to pay Class 3 contributions, by completing a CF83 form – this can now be done online here.
How are UK NIC rates for expats changing?
From 6 April 2026, for tax years 2026 to 2027 onwards:
- you cannot pay Voluntary Class 2 National Insurance Contributions for time abroad.
- you can only pay Voluntary Class 3 National Insurance Contributions for time abroad.
This does not affect Voluntary National Insurance Contributions for time abroad before 6 April 2026.
So if you have gaps to fill in the last 6 years of your National Insurance record, you should still be able to pay those as Voluntary Class 2 contributions.
For future years though, it represents a significant increase in the cost of paying NICs.
Are Class 3 NICs still worth paying?
In 2026 the rate for Voluntary Class 3 NICs is £17.75 a week – that’s £923 per year.
Considering Class 2 NICs only cost £182 per year, it’s a big difference. But I think it’s still worth paying.
Instead of considering the pounds and pence (which has some sticker shock attached to it) let’s look at what you’ll get back.
For every year of NICs you pay, at current rates, your annual state pension will increase by £342. From your State Pension Age, you’ll get that amount back every single year.
The amount of State Pension you’ll receive also increases every year, in line with the triple lock rules – rising by the lower of:
- Consumer Price Inflation (CPI)
- Average earnings growth
- or 2%
So if you pay one year of NICs, it will take just over 2 1/2 years of state pension to get your money back (in real inflation adjusted terms). After that year, it’s all profit.
If we assume (on average) you’re going to live about 16 years beyond the state pension age, it adds up to £5,472 over your lifetime, for each year you pay in.
And as long as you’re planning to live into your early 70’s, you’d significantly lose out by not paying.
What if the UK government abandon the triple lock?
There’s a lot of debate around this, but I can’t see it happening. The reason isn’t economic, it’s political.
If a government chose to fundamentally change the bedrock of the UK retirement system, they wouldn’t stay in power for long. They’d really struggle to keep the popular vote. Especially as other governments, could choose to unwind the decision once in power.
What’s more likely to happen, is the State Pension Age will rise as life expectancy rises. But let’s face it, that’s a good problem to have, it means we’re living longer.
More information available on recent changes here – HMRC: Voluntary National Insurance Contributions for periods abroad from April 2026
