British Pension Classes – Thailand

British Pension The British pension system has a number of classes with regards to what you will recieve at your retirement age. We have listed some fo the important aspects of the classes. If you need more advice about your retirement in Thailand as a British national then speak to us online or in person anywhere in Thailand as we have a law office in every major city of Thailand.

Class 1
These contributions are paid by employees who work for an employer and whose earnings are at, or above, the Lower Earnings Limit.  The amount of the contribution depends on the amount earned (up to a maximum NI contribution an employee can pay).  NI contributions are deducted from an employee’s wages.  Employers also have to pay NI contributions for all employees who earn at, or above a set limit.

Class 1A
These contributions are paid only by employers providing employees with in-kind benefits for private use—for example, cars and fuel.

Class 1B
These contributions are paid only by employers who have a Pay as You Earn (PAYE) Settlement Agreement with the Inland Revenue for Tax.

Class 2
These contributions are paid for every week that one is self-employed and the amount of the contribution is the same amount regardless of the amount you earn.  In the U.K., these NI contributions can be paid by quarterly bill, or by direct debit.  The direct debit alternative allows payment of the NI contributions every four or five weeks in arrears (depending on the number of Sundays in the tax month) directly from a U.K. or Channel Islands bank or a building society account.

Class 3
These voluntary contributions are paid to protect the right to some Social Security benefits if there is no liability to pay Class 1 or Class 2 NI contributions.  They are paid like Class 2 NI contributions, or as a lump sum at the end of the tax year.

Class 4
These contributions are for the self-employed with net profits over a certain amount, normally paid by self-employed people in addition to Class 2 NI contributions.  They are collected with income tax, and do not count towards benefits.

Plan your retirement in Thailand well. Ensure that your pension is up to date and that you are able to qualifiy for a retirement visa .

Leave a Reply

Your email address will not be published. Required fields are marked *