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Where Taxpayers and Advisers Meet

Class 2 NI Help for a Landlord

solange
Posts: 61
Joined: Wed Aug 06, 2008 4:00 pm

Class 2 NI Help for a Landlord

Postby solange » Sun Jan 21, 2018 8:15 am

Hi Everyone

Hoping someone could help.

So I started my property business in 2006, after leaving work.

I have built up a portfolio of 11 properties, last one added in 2013.

I managed the properties myself and continued to seek adding to my protfolio throughout those years.

I left to go abroad part way through 2013.

I have paid no NICs in all this time.

I now would like to pay nics for the years 2006 to 2013.

I sent in my application to pay NIC whilst abroad form.

I have received a rely saying I can pay as follows: the time I was abroad would be subject to class 2 but the time I was in the UK, should be class 3.

I thought using the HMRC definition/rules I should have been paying class 2.

I also would have been due to pay class 4 in the years 13/14 and 16/17.

1)Can anyone advise if I should be paying class 2?

2) My other concern is, if I am liable to class 2, should I have paid these in the years they fell due, and will I be penalised for this?

Thanks for any advice.

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Class 2 NI Help for a Landlord

Postby AmanSood » Sun Jan 21, 2018 11:18 am

if you are abroad then you should make voluntary class 2 contributions to ensure you maintain your qualifying years for your UK pension. This is not mandatory and I assume you were making social security contributions in your country of residence then I don't see why HMRC would penalise you for this.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

solange
Posts: 61
Joined: Wed Aug 06, 2008 4:00 pm

Re: Class 2 NI Help for a Landlord

Postby solange » Sun Jan 21, 2018 1:24 pm

Thanks for your reply amansood.

It was actually the time I was in the uk I am concerned about.

I think I should be paying class 2 for that period, 2006 to 2013, despite the letter saying I owed class 3, as I meet the business criteria for nic purposes.

So my questions are

Would I be penalised for not having paying them, and can I go back and pay class 2 for that period?
If so do I need to write a letter explaining my business status?

Thanks


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