HMRC clarification about voluntary NICs for time spent abroad - 27th January 2026

Changes to voluntary NICs for time spent abroad

In Budget 2025, the Government revealed that there would be updates to voluntary NICs for time spent abroad. HMRC has provided an update saying that these changes aim to make sure that people building a State Pension from outside the UK have a strong enough connection to the UK and are paying an appropriate, fair price. There is also a broader review of voluntary National Insurance contributions (NICs) policy planned to ensure the system remains fair and effective.

Starting April 2026 (for tax years 2026/27 onward), voluntary Class 2 NICs for periods abroad will end. New Class 3 NICs applications for time abroad will need ten years of continuous UK residency or NICs.

HMRC is urging anyone who has clients who work abroad to inform them of the changes coming into effect from April 2026 and equip them with the knowledge they need to make informed decisions.

If individuals currently pay Class 2 NICs abroad, HMRC will write to them from July 2026 if they are affected. If they pay by Direct Debit, they should not cancel it — HMRC will collect their final payment for the 2025/26 tax year on 10 July 2026.

The changes do not affect the ability of anyone to purchase voluntary NICs for tax years prior to 2026/27.

For more information, please see the latest guidance about Voluntary National Insurance contributions for periods abroad from April 2026.

HMRC says that further details and guidance will be published later.

Source: Techlink Professional. This is a news bulletin and is up-to-date as of the date of publishing. Please check the publishing date at the top of the article.