Voluntary Class 2 NI Contributions

Elizabeth_Braun

Hello everyone!

Does anyone happen to know if paying voluntary class 2 contributions of only about £110 per year would give me a full qualifying year towards my pension? I could set myself up as self-employed.

Thanks in advance.

HappyMJ

Elizabeth_Braun wrote: »

Hello everyone!

Does anyone happen to know if paying voluntary class 2 contributions of only about £110 per year would give me a full qualifying year towards my pension? I could set myself up as self-employed.

Thanks in advance.

It will. They aren't voluntary though. Voluntary NI is Class 3 which is £14.10 per week.

Self employed persons pay Class 2. You need to actually be self employed doing work and filling in a self assessment tax return. You need to earn more (as profit) than £5,965 per year and less than £8,060. Class 4 is payable on profits over £8,060.

Elizabeth_Braun

Thank you. Has that changed as my hubby used to pay class 2 conts whilst he was still registered as self employed, but was earning nothing (he was doing a funded PhD instead). He wasn't earning, but was still able to pay his class 2s.

I can register as self employed, but there's no way I'd earn enough to pay through self assessment (which I read about on the NI site).

It seems barmy that you'd have to pay about 5 times as much voluntarily and probably aren't working, as when you are working ...

molerat

[STRIKE]It has been rumoured that[/STRIKE] class 2 will, rightly so, end in the next few years.

xylophone

https://www.gov.uk/self-employed-national-insurance-rates


http://www.ukbudget.com/2016-measures/abolition-of-class-2-national-insurance-contributions.aspx

Elizabeth_Braun

OK thanks. The gov.uk site I'd seen already, but the other was helpful - even if it doesn't say what I'd like it to!!!

p00hsticks

Elizabeth_Braun wrote: »

It seems barmy that you'd have to pay about 5 times as much voluntarily and probably aren't working, as when you are working ...

But it seems even barmier if you were allowed to voluntarily pay just £110 a year for 35 years simply in order to gain entitlement to a state pension now worth £155 a week though

Elizabeth_Braun

Very true! In the spirit of the forum though, it's a good money saving deal!! :rotfl:

HappyMJ

Elizabeth_Braun wrote: »

Very true! In the spirit of the forum though, it's a good money saving deal!! :rotfl:

There are cheaper ways of getting NI credits.

If you're out of work and looking for work you can claim JSA and you will get NI credits.

If you're too ill to work you can claim ESA which will also get you NI credits.

Even if you get no payment due to your capital or your partners earnings you will still get the credits which are free.

You could also set up a limited company doing as little as possible and pay yourself at least £112 per week and up to £155 per week from the company even if the company has to borrow the money to pay you and it can borrow it from you to pay you then you will also get NI credits for free. You'll have a few forms to fill out each year showing the company is trading and has no profit which is not difficult.

Elizabeth_Braun

Hmm, true, but there are problems with each for me:

Claiming JSA would require me to sign that I would do full time work, which I am not in a position to do. = Fraudulent claim.

ESA - I have no diagnosable condition (despite having burnout etc) and always manage to fall just outside the regulations for any benefits. = Unsuccessful claim.

Pay self £112 a week? = Fraudulent/seriously dodgy accounting

Guess I'll have to select from:
a) Pay £14.10 a week/£733 a year (ooouch! There go my whole earnings, baring £17 for an annual takeaway)
b) Pay above amounts when inheritance is received (rather a mercenary way to look at ageing mum, albeit a realistic one)
c) Go without (and hope that hubby never has a fatal or incapacitating illness or accident!)

It's looking like c) until b) becomes a reality - unless Sir gets a whopping wage rise, then we can look at a) as well. Or maybe I can find a way to earn some more ££ in the fullness of time to protect/build my state pension.

HappyMJ

Elizabeth_Braun wrote: »

Hmm, true, but there are problems with each for me:

Claiming JSA would require me to sign that I would do full time work, which I am not in a position to do. = Fraudulent claim.

ESA - I have no diagnosable condition (despite having burnout etc) and always manage to fall just outside the regulations for any benefits. = Unsuccessful claim.

Pay self £112 a week? = Fraudulent/seriously dodgy accounting

Guess I'll have to select from:
a) Pay £14.10 a week/£733 a year (ooouch! There go my whole earnings, baring £17 for an annual takeaway)
b) Pay above amounts when inheritance is received (rather a mercenary way to look at ageing mum, albeit a realistic one)
c) Go without (and hope that hubby never has a fatal or incapacitating illness or accident!)

It's looking like c) until b) becomes a reality - unless Sir gets a whopping wage rise, then we can look at a) as well. Or maybe I can find a way to earn some more ££ in the fullness of time to protect/build my state pension.

JSA requirements are actually quite lenient if they aren't actually giving you any money. You don't have to look for full time work nor are required to take any job offer. You just have to be looking for work....any work... You rarely sign on, if ever, and they can't sanction you.

Check the requirements.

https://www.gov.uk/national-insurance-credits/eligibility

You’re unemployed and looking for work, but not on Jobseeker’s Allowance

Contact your local Jobcentre to claim Class 1 credits

Never mind about ESA in that case...

Nothing fraudulent about paying you to undertake work as a director of a limited company. Directors of companies do lend the company money and then carry forward the losses to future years. You've got to do something....anything....and you can pay yourself £112 per week if you wish even if there is little work to actually do. You can simply be employed to look for new contracts for the company even if you aren't very successful at it.

Have you actually checked your NI contribution history online.

You may be pleasantly surprised. My OH had just one missing year and was only two weeks short in that year. She wasn't expecting that as she's been in and out of work many times over the years.