NATIONAL INSURANCE REBATES

INTRODUCTION:

All employees in the UK have a certain amount of National Insurance deducted from their salary each month. These funds are used to fund your state pension.                                                   To qualify for a full state pension, you would need 44 qualifying years of contributions. If you leave the country, or retire with less than 11 qualifying years, you will not receive any basic state pension. However, a portion of your National Insurance payment goes towards the State Second Pension (S2P - formerly known as SERPS).

You can choose to opt out of this S2P and ask for the NIC to be re-directed into a private or stakeholder pension fund. You will thus be able claim your contributions, including growth thereon when you retire, irrespective of where you live.

The Pension Act is currently undergoing some changes, and until such time as this is finalised, Tax Etc is no longer providing this service