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Class 2 NI Voluntary contributions, is it worth it?
Peck06
Posts: 1 Newbie
Apologies if this is in the wrong section but I am just looking for opinions on Class 2 NI payments.
My scenario is that I am employed full time and fully pay my NI contributions via that employment. As an aside I a manage a rental property for a family member which affords me a small income and complete the odd bit of housing maintenance throughout the year for colleagues/friends/family.
My extra income is around £1200 a year which I declare via self-assessment.
My question is should I voluntarily pay Class 2 NI contributions on this extra income and does it affect my state pension positively or negatively if I do or don't pay? (I'm only 30 so won't be retiring for a lot of years yet! I also pay into a employer based pension scheme from my full time employment.)
Cheers
My scenario is that I am employed full time and fully pay my NI contributions via that employment. As an aside I a manage a rental property for a family member which affords me a small income and complete the odd bit of housing maintenance throughout the year for colleagues/friends/family.
My extra income is around £1200 a year which I declare via self-assessment.
My question is should I voluntarily pay Class 2 NI contributions on this extra income and does it affect my state pension positively or negatively if I do or don't pay? (I'm only 30 so won't be retiring for a lot of years yet! I also pay into a employer based pension scheme from my full time employment.)
Cheers
0
Comments
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Depends how much you earn from being employed - doesn't sound as if you are eligible to pay voluntary contributions (in which case you don't need to).
Have a look at https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions0 -
There is no point in paying twice.
If you can pay only class 2 they are fantastic value, but they are being abolished next year.0 -
Apologies if this is in the wrong section but I am just looking for opinions on Class 2 NI payments.
My scenario is that I am employed full time and fully pay my NI contributions via that employment. As an aside I a manage a rental property for a family member which affords me a small income and complete the odd bit of housing maintenance throughout the year for colleagues/friends/family.
My extra income is around £1200 a year which I declare via self-assessment.
My question is should I voluntarily pay Class 2 NI contributions on this extra income and does it affect my state pension positively or negatively if I do or don't pay? (I'm only 30 so won't be retiring for a lot of years yet! I also pay into a employer based pension scheme from my full time employment.)
Cheers
If you paying enough NI contributions through your employment then you should already have a full qualifying year/s for the state pension, say for the tax year April 2017 to April 2018.
Paying Class 2 NI contributions on top of that will be a complete waste and get you nothing extra.
What made you think of that, it's not a pot of money that you are building up.0
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