Post early retirement NI Contributions

bigchipper

I posed this question in another topic but it remained unanswered.


To qualify as self employed dog walker/ house-sitter or something similar in order to pay Class 2 (?) NI contributions would you actually need to have carried out some of this activity in a paid capacity or can you still register as self employed and pay the contributions even if haven't actually had any paying clients?

dunroving

bigchipper wrote: »

I posed this question in another topic but it remained unanswered.


To qualify as self employed dog walker/ house-sitter or something similar in order to pay Class 2 (?) NI contributions would you actually need to have carried out some of this activity in a paid capacity or can you still register as self employed and pay the contributions even if haven't actually had any paying clients?

I'm surprised/disappointed no-one has answered this post, or your other one (mainly because I want to know, also!)

I don't quite understand the rationale for the Class II (voluntary/self-employed) and Class III (voluntary/unemployed) contributions. For example, see this page:

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

People who work overseas and may already be earning an overseas "state pension" can pay Class II NI, thereby also earning a UK state pension, for just £143 per year.

Similarly, someone who is self-employed (i.e., earning money) also can get a state pension by only paying £2.75 a week (£143 a year Class II's).

However, someone who "voluntarily" pays NI while unemployed and choosing not to claim benefits has to pay £13.90 a week (Class III; £723 per year).

Where's the logic in that?

JezR

At one time these were broadly the same give or take pence in one direction or the other. Then came along someone called Gordon Brown.

For tax year 2000-1 he reduced class 2 NI from £6.55 to £2. At the same time class 4 was raised to 7% and liable after £4385 instead of £7530.

Goldiegirl

I haven't got an answer to the OP's question, but it's prompted a linked question that I need to ask.

I've just retired early myself.

I've got 38 years worth of NI contributions, but I was contracted out for about 30 of those years.

I won't be getting a state pension for another 11 years, and I know that because I was contracted out I won't get the full 'new' state pension.

If I continued to make NI contributions on a voluntary basis, would I be able to increase my state pension to the full amount, or at least a bit closer to that figure?

If anybody has any thoughts on this I'd be grateful

bigchipper

I'm glad I've prompted a debate, even if no one has the answer. I was beginning to think the question was too dumb to even warrant a response!

xylophone

If I continued to make NI contributions on a voluntary basis, would I be able to increase my state pension to the full amount, or at least a bit closer to that figure?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf


See the above.

bigchipper

Goldiegirl wrote: »

I haven't got an answer to the OP's question, but it's prompted a linked question that I need to ask.

I've just retired early myself.

I've got 38 years worth of NI contributions, but I was contracted out for about 30 of those years.

I won't be getting a state pension for another 11 years, and I know that because I was contracted out I won't get the full 'new' state pension.

If I continued to make NI contributions on a voluntary basis, would I be able to increase my state pension to the full amount, or at least a bit closer to that figure?

If anybody has any thoughts on this I'd be grateful

You would but the amount it would cost you would be dependent on the class of contribution that you then paid. Class 2 is far cheaper than Class 3 hence my original question.

bigchipper

xylophone wrote: »

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf


See the above.

Thanks but this doesn't seem to answer my original question (as far as I can tell).

Goldiegirl

xylophone wrote: »

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf


See the above.

Thank you.

I'll probably wait and see what the valuation is in 2016 - that'll give
me another 10 years of contributions to increase the state pension if I decide to make more NI contributions.

2016 also works well as our household income will increase when my husbands other pensions are available in 2016

xylophone

[Thanks but this doesn't seem to answer my original question (as far as I can tell).

The reply was in response to Goldiegirl's question about increasing her state pension.

bigchipper

xylophone wrote: »

The reply was in response to Goldiegirl's question about increasing her state pension.

Oops sorry.