subject: All That You Need To Know About The UK National Health Insurance Rebate [print this page] All That You Need To Know About The UK National Health Insurance Rebate
One of the difficult subjects relating to tax that foreigners to the United Kingdom have to deal with is the issue of the National Insurance rebate. The national insurance rebate is a semi-compulsory deduction that is made from your income towards the national pension scheme. The reason why I am saying that it is semi-compulsory is because although you can choose not to have your income deducted and sent to the National Insurance Scheme, you cannot choose to take the money with you. You can only be allowed to transfer you money into a personal pension plan.
Advantages
Now that we know that you cannot have your money with you but you can have it transferred to a personal pension plan, what is the advantage of transferring it to the personal pension plan?
The first advantage of the personal pension plan is the fact that you have the opportunity of choosing the plan that would give you the most when it comes to the returns. This makes sure that the amount of money that you deposit in your pension scheme is not just a form of savings, but also a means of investing money. You are therefore not forced to save money with the government agency when you know very well that you could get better rates with another organization.
The other advantage of claiming the amount of money that has been sent to National Insurance is that it gives you great flexibility when you choose to leave the country. This means that after diverting your contributions from the National Insurance to the personal pension plan, you have an easier task ahead of you of taking the money from your own plan than getting your money from the National Insurance, when you choose to leave the United Kingdom permanently.
In addition to diverting your contributions to a persona scheme, it is also possible that you could have overpaid money to the National Insurance. In such a case, you have every right to claim for cash even if you are not leaving the UK. There are several scenarios that can cause you to overpay your contributions and they include: paying the contributions when your earnings were below the required threshold and paying contributions separately in case you were both employed and self-employed at the same time, among other things.
All in all, claiming your money from the National Insurance, just like any claim that you might make to the tax office, should not be a tedious task. All that shall be required of you is timely communication and proper documentation.
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