Scottish Landlord - National Insurance Class 2 contributions

DSW25

Does anyone know if I qualify to pay for voluntary class 2 NI if:

1. renting out property in Scotland, income is approximately £5,500 after deducting expenses etc
2. no other income

Would appreciate any assistance

drumtochty

https://www.property-tax-portal.co.uk/taxarticle192.shtml


That would suggest you are not liable to Class 2 NI if you only have one property.


Therefore I suggest that as renting out the property is not a full time job and if you are still younger than the 6 April before your 65th birthday that you register with HMRC as a dog walker, ironing person or a cleaner or whatever.


You buy a duplicate book and make out some invoices for the trade that you choose. You also spend a small amout of money say on leads if you are a dog walker for instance. For the avoidance of doubt these invoices must be to real people you have worked for.



After earning say £400 hundred pounds for this work, you can then in Apritl 2019 add the self employed page to your tax return, tick the box that says you want to pay Class 2 NI and enter your self employed earnings.



As the income is below £1000 it is not taxed and you do not have to do a tax return but in your case you do declare it to pay the Class 2 NI.


You will get a bill with your tax return and pay the £150 for your Class 2 NI. You now have a further one years NI towards your state pension. You may not be able to do this in the 2019/ 2020 tax year.

Terron

Landlords do not have to pay class 2 NI, but they may be eligable to do so voluntarily if what they do counts as a "busines".
HMRC has guidlines for when being a landlord qualifies as a business -for this purpose https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim23800
I am trying to qualify to pay class 2 NICs for a year to max out my SP. I own multiple properties, almost all my income for last year came from letting them, and I bought a new property (though using a company rather than directly) so I think I have a chance.


Note that different definitions of !business! are used in other places in the tax code.