Advice -Confused on topping up Pension, Class 2 or 3? Sole Trader? How many years??

p00hsticks

MallyGirl said:

Dazed_and_C0nfused said:

You do need to add another 11 years however as you have 17 future years making voluntary contribution for earlier years may not be necessary.

Having or contributing to a personal pension now will not add NI years.

Also, if you end up paying voluntary NI you should think carefully about the 11th year.

The first 10 post 2016 years will add £58.24, taking you to £202.70.  The final year will only add the remaining £1.15 so not nearly as good value if you were having to fork out £800-900.

typo in the opening comment?

I think you need to be a bit more explicit - that first sentence looks ok to me ?
The OP doesn't need to buy any previous years because there are more than enough available going forward to get him to the maximum 

p00hsticks

stylus360 said:

So confusing, i was told i had to make up voluntary contributions by 2025?

You can only buy years from 2006-2019 until April 2025 - this is a temporary extension originally introduced as part of the new State Pension introduction in 2016.
 
After April 2025 the rules will revert to you only being able to make voluntary contributions for the previous six years. And of course you can always make contributions for the current year. 

So in your case, where you need 11 years to reach the maximum, but are still 17 years way from State Pension Age, there is no need for you to be making voluntary contributions for previous years now. - if your situation changes and you earn credits through work or benefits or via looking after grandkids etc then buying back years would be unnecessary and a waste of money. 

MallyGirl

p00hsticks said:

I think you need to be a bit more explicit - that first sentence looks ok to me ?
The OP doesn't need to buy any previous years because there are more than enough available going forward to get him to the maximum 

What you have subsequently posted is more followable. I misunderstood your comment when I read it the first time.
OP does need to accrue another 10 years but they can do that just by working/getting benefits over the next 17 years rather than having to top up as well.

stylus360

MallyGirl said:

p00hsticks said:

I think you need to be a bit more explicit - that first sentence looks ok to me ?
The OP doesn't need to buy any previous years because there are more than enough available going forward to get him to the maximum 

What you have subsequently posted is more followable. I misunderstood your comment when I read it the first time.
OP does need to accrue another 10 years but they can do that just by working/getting benefits over the next 17 years rather than having to top up as well.

I will not be 'working', under any employee as i was for 23/24 years.

I am now a 'Sole Trader' and just submit my income from rentals/receipts etc to my accountant and pay the HMRC as required.

I am still non the wiser tbh.

What exact information do you require to provide sound advice?

Thanks

pinnks

If your income is from property rental then it is unlikely that you will be treated as what you call a sole trader.  Your income is from a property rental business and it is unlikely that you will be treated as carrying on a trade - there is guidance about this on HMRC's pages of GOV UK.  You will be able to pay Class 3 voluntary NI going forward, so it is a question of when and how much you want to pay per year versus the risk of not making it to pension age having paid voluntary NI earlier but cheaper... 

molerat

I have just logged in and my £824.20 has increased my pension by £5.21...lol

So you filled a pre 2016 year which doesn't give as much as a post 2016 year (£5.82).

I would take approx 3 years 2 weeks break even

An absolute bargain.  Buy an annuity and take 20 years to break even.

You can set up a direct debit to pay class 3 for the years going forward.  https://www.gov.uk/pay-voluntary-class-3-national-insurance/direct-debit

Or wait until 2030 and start filling then. There is little point in filling past gaps unless they are very cheap part filled.