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bigduckontax, Accountant
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I work oil company, from which i am employed out of

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i work for an oil company, from which i am employed out of Aberdeen although the company has its main office in Houston and another in Egypt ( Cairo) where i am currently working offshore.
i have been working there on rotation 4weeks on & 4 weeks off for the last 5 years
i am a home owner in Scotland & i pay tax here.
2 years ago i claimed back my NI contributions ( 3 years worth) and paid class 2 stamp. At that time i asked to pay voluntary class 2 from then on but this did not happen.
i called the tax office and they told me i need to be self employed to claim back NI although numerous people working overseas have done the exact same thing.
this has worried myself in case i wasn't entitled to pay class 2 and they request the money back.
any advice appreciated
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.
Hello, I am Keith, one of the experts om Just Answer, and pleased to be able to help you with your question. I have s friend who was in exactly the same situation as you, 4 weeks on and 5 weeks off. He was treated quite correctly as an UK based employee and was quite paying Class 1 NI contributions through PAYE. Please confirm that you are being remunerated through PAYE.
Customer: replied 11 months ago.
Yes I am
Expert:  bigduckontax replied 11 months ago.
Then you should be having tax and NI deducted which is correct. Is that what is happening?
Customer: replied 11 months ago.
if that is correct that i should be paying class 1 stamp was i reimbursed incorrectly when i received a lump sum after i filled out form NI 38 ? stating i worked overseas? as i have heard a competitors company actually go thro the process on their workers behalf so that they can reduce the employers contribution to the NI, i believe. this company I'm referring to is one of the largest in the world.
Expert:  bigduckontax replied 11 months ago.
I can assure you that as a one month on and one month off worker you are taxed as an UK resident. You are not working overseas. The reimbursement of your contributions was incorrect and will affect your State Pension in the long term as you may not have enough qualifying years. I cannot comment upon what other companies do for their employees, but for you the deduction of Income Tax and NI through PAYE is the correct procedure. When HMRC catch up with the UK employees of the 'largest in the world companies' they are in for a nasty shock and a hefty tax and NI bill to boot! I am so sorry to have to rain on your parade.
Customer: replied 11 months ago.
not exactly the answer i was wanting to hear but thanks for the advice.
On the subject of qualifying years can you tell me how many it is ?
and also i've heard, correctly or incorrectly, that you can take a decision not to pay NI for a certain time during your working life is that correct.
Expert:  bigduckontax replied 11 months ago.
Needless to say the new rules are exceedingly complex and you can read about them here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503899/your-state-pension-explained-Feb_2016.pdf You need 35 years of NI contributions to be entitled to a full State Pension and you will not get one at all unless you have 10 years worth in the bag. If you are unemployed and receiving benefits (Job Seekers' Allowance or Unemployment and Sickness Benefit) then your card remains stamped to use an old expression. You, at present, do not need to make contributions over the age of 60, but soft [source: Rights for Seniors][ 'However, some men who are not in employment and between the ages of 60-65 may receive auto-credits to protect their contribution record up until they are abolished in 2020. The right to receive auto-credits is being phased out in line with the increase in State Pension Age for women.' You are ill advised not to make NI contributions and could be in for a nasty shock when you reach pensionable age and your contribution record is inadequate. The pension age has already risen for women and is due for review for both sexes next year. I have a sneaking suspicion that the 35 year contribution rule is a target for change. Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
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Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 11 months ago.
Thank you for your excellent support.

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