already a member?   login »
username password

National Insurance (NI) Rebates UK

Guide to ensuring you don't miss out on 1000's of pounds

When you first arrive in the UK, you will need to set up your NI number so you can claim back any tax if, by chance, you have overpaid into the system.

If you are planning on retiring in a country other than the UK, getting an NI rebate can save you thousands of pounds! After you set up your NI number, you will want to apply for the NI rebate so that the contributions you make to the NI are separated into a personal pension fund. If you don't do this, your money will be lumped into the National Insurance pool that can only be accessed if you retire in the UK. By by the time you retire, your NI rebate will have likely turned into into tens of thousands of pounds! So you want to make sure and have access to that money.

Transferring your hard earned pension contribution from the UK governments pension plan to a private UK pension plan is called an NI rebate or NI refund.

For working travellers who are not planning to retire in the UK this ensures you can access these funds when you retire outside of the UK. Many people are unaware of this process, so they miss out on 1000's of pounds.

Example of How the Ni Rebates Work

On average a person earning £30,000 per year could expect to receive a National Insurance rebate of around £1,500 per year. The average rebate amount is approximately 5% of your income or £1,500 per year.

Over a 2 year period, this could potentially amount to £3,000.

As an example, if you are 25 years old when you leave the UK and you retire when you are 60, your £3,000 could have turned into 32,029 with just a 7% return on your invested money!

Organise your NI Rebate online »

Frequently Asked Question About Ni Rebates

What is the NI rebate transfer process?

To sort out your NI Rebate online is a relatively easy 2 step process. Be aware, the NI State Pension fund will not transfer money directly into an overseas pension.

The 2 steps are:

  1. Transfer the funds from the NI state pension to a private UK pension trust. (To ensure you get the most benefit, do this very soon after you arrive in the UK)
  2. When you arrive back home, use a pension transfers company or financial planner to transfer the funds into your home pension plan.

Transferring the funds back home may incur tax, dependent on where you are returning.

Can I get a cash NI refund?

The UK government doesn't allow you to accept this rebate as cash. The intention of the fund was for your retirement, so the only option is to transfer the funds to a private pension trust.

Why do this as soon as I get to the UK?

NI refunds only allow you to transfer the funds contributed during the current tax year (April 6th to the following April 5th).

For example, if you have been living in the UK for 4 years and delay the process until you leave, you will only be able to transfer the contributions from the last year into a private pension account.

If you opt out of the NI state pension plan as soon as you get to UK, in the above example your private pension fund would receive the full amount of pension paid over the 4 years. The difference could be 1000's of pounds.

Age, income, and retirement location are some of the factors which may influence your decision to get an NI rebate. For most travelers in the UK an NI rebate is a really good idea.

If you are uncertain if getting an NI refund is for you may want to contact an independent financial adviser for further advice. Find independent financial advisers on Unbiased.co.uk.

Do I need to transfer funds across every year?

No, after the initial set-up, the NI state pension funds will go straight into you private pension trust each year.

How much will go into my fund each year?

The average rebate amount is approximately 5% of your income or £1,500 per year if you have an income of £30,000.

There are a few factors that affect your refund:

  • Your salary/income
  • How many days you worked in the year
  • Your age
  • Other variables dependent on individual circumstances

Where can I get more information on my state pension?

Visit the Department for Work and Pensions website for more detailed information.


Go to top of page UK Jobs / Working In The UK / UK Taxation / NI Rebate Online