Voluntary NI contributions - No brainer?

Sea_Shell

comeandgo said:

Are you not considering doing something self employed and paying Voluntary class 2 ?  So much cheaper.

My previous employment has not been in areas able to transpose into being self employed.

Mainly office admin in various sectors, some more technical than others.

I have no skills that would make for self employment ☹️. Plus then there'd be the hassle of needing insurances and other "paperwork".

I trust it has to be legitimate self- employment...not just a smokescreen!! 😉.

I could be a nail technician or a running instructor, or household budgeting guru, that just doesn't have any clients!!! 🤣

comeandgo

You could do ironing, or buy and sell second hand items, you would not need insurance, you don’t need to even make a profit.

Sea_Shell

comeandgo said:

You could do ironing, or buy and sell second hand items, you would not need insurance, you don’t need to even make a profit.

🤣🤣🤣🤣🤣

I think I'll pass!!


Seriously though, if it's a business, then one should consider both liability insurance and potential effects on personal banking.   If you're a trader and claiming NI because of this "trade" it risks opening up a whole can of "official" worms.


Plus it sounds like "work"!! 

Sea_Shell

I'm going to make this my "job of the day", to ring up the Future Pension Centre and make arrangements about paying at least those "half-price" years.

eastcorkram

Sea_Shell said:

I'm going to make this my "job of the day", to ring up the Future Pension Centre and make arrangements about paying at least those "half-price" years.

Good job for the day ! Let us know how it went.

Sea_Shell

Well, got straight through at 9am after listening to the "blurb", no queue.    Done and sorted very quickly.

Yes, they agreed that buying those 2 part years would be worthwhile, and would add £10.02 per week, for payment of £792.50.

1 year buys the full £5.29 and the other buys £4.73...but I forgot to ask which was which!!   I'm guessing the lower amount was the pre-2016 year?

So break even in 79 weeks.   But that £10.02 will (hopefully  ) be index linked, so effectively the payback time will be even shorter than that.

Next job, for another day, ring HMRC and get a payment code.  

molerat

£4.73 is a pre 2016 year with an "old calculation" starting amount.

Silvertabby

I bought 4 years, all post 2016.  3 years bought me the full £5.29, but the 4th year was just the £4.80 or so that I needed to take me up to the full £185.15. 

fly-catchers

Silvertabby said:

I bought 4 years, all post 2016.  3 years bought me the full £5.29, but the 4th year was just the £4.80 or so that I needed to take me up to the full £185.15. 

I need to buy one year to give me a full state pension at 66 in early 2024 less 41p a week.. I thought of keeping the £800.80 in my 3% account until nearer the time. But is it a good idea not to leave it too near the pension date to ensure it’s all in place when it’s due?

molerat

fly-catchers said:

Silvertabby said:

I bought 4 years, all post 2016.  3 years bought me the full £5.29, but the 4th year was just the £4.80 or so that I needed to take me up to the full £185.15. 

I need to buy one year to give me a full state pension at 66 in early 2024 less 41p a week.. I thought of keeping the £800.80 in my 3% account until nearer the time. But is it a good idea not to leave it too near the pension date to ensure it’s all in place when it’s due?

At £800.80 means it is 21-22 so will not increase in price until April 24.  May as well keep it somewhere earning a little interest until around this time next year.