This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Class 2 NI Help for a Landlord

solange
Posts:73
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:216
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:73
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


Return to “PAYE and Payroll Taxes, National Insurance, NICs”