national insurance payments for landlord

JennyP

I gave up work in December as my hubby has retired. I am nowhere near pension age (48). I have buy to let property which brings in enough for me to live off.
Now I am not paying National Insurance through my PAYE income do I have to do anything about paying it or will it happen automatically through my tax return? I have read the government website information already and it sounds like it just comes off my tax return.
Going to investigate if I need to pay AVCs too. Not sure how to do that!

Dazed_and_confused

You don't mention being self employed so why would you be paying NI through your tax return?

Have you checked what your State Pension forecast is on gov.uk or your Personal Tax Account? Without knowing that how will you know the benefit (or not) of making further contributions?

JennyP

No, I'm not self employed. I'm just living off property income. But surely I still have to pay some NI?

Dazed_and_confused

On what income??

Voluntary national insurance contributions sound a more likely option. But only after you have checked your current State Pension forecast.

JennyP

I think after deductions probably about £20k.
I did a rough calculation so I know what to keep back and expect a tax bill of around £3k per year.

Loanranger

It's unearned income, so I think the rules are different. Check your pension forecast.

JennyP

Yes, pension forecast is on my to do list!
But I think I checked before and it was fine. Well, fine in the sense I have paid the right number of years!

Xbigman

At 48 years old you would have needed to be in full time employment (or equivalent) since you were 13 in order to get in 35 years of NI contributions so I suspect you will need a few more years yet. You will need to make Voluntary contributions.




Darren

JennyP

Xbigman wrote: »

At 48 years old you would have needed to be in full time employment (or equivalent) since you were 13 in order to get in 35 years of NI contributions so I suspect you will need a few more years yet. You will need to make Voluntary contributions.




Darren

Thanks Darren.
Glad I checked as you are right and I haven't paid enough!

pmlindyloo

You need to check whether you need to be registered as self employed as a landlord.

Have you got more than one property?

Call HMRC and explain your circumstances. They will advise you.

If you have to register as self employed then your NI contributions may be deducted through your tax self assessment.

Read this article:

https://www.simplybusiness.co.uk/knowledge/articles/2017/06/a-guide-to-self-assessment-tax-returns-for-landlords/

Darksparkle

It's highly unlikely you'd be considered self employed. It would just be property income on your return and NI isn't payable on property income.