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  • FIRST POST
    • JennyP
    • By JennyP 13th Apr 18, 1:33 PM
    • 944Posts
    • 722Thanks
    JennyP
    national insurance payments for landlord
    • #1
    • 13th Apr 18, 1:33 PM
    national insurance payments for landlord 13th Apr 18 at 1:33 PM
    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!
Page 1
    • Dazed and confused
    • By Dazed and confused 13th Apr 18, 1:45 PM
    • 2,811 Posts
    • 1,355 Thanks
    Dazed and confused
    • #2
    • 13th Apr 18, 1:45 PM
    • #2
    • 13th Apr 18, 1:45 PM
    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
    • By JennyP 13th Apr 18, 1:47 PM
    • 944 Posts
    • 722 Thanks
    JennyP
    • #3
    • 13th Apr 18, 1:47 PM
    • #3
    • 13th Apr 18, 1:47 PM
    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
    • By Dazed and confused 13th Apr 18, 1:48 PM
    • 2,811 Posts
    • 1,355 Thanks
    Dazed and confused
    • #4
    • 13th Apr 18, 1:48 PM
    • #4
    • 13th Apr 18, 1:48 PM
    On what income??

    Voluntary national insurance contributions sound a more likely option. But only after you have checked your current State Pension forecast.
    Last edited by Dazed and confused; 13-04-2018 at 1:50 PM.
    • JennyP
    • By JennyP 13th Apr 18, 1:50 PM
    • 944 Posts
    • 722 Thanks
    JennyP
    • #5
    • 13th Apr 18, 1:50 PM
    • #5
    • 13th Apr 18, 1:50 PM
    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
    • By Loanranger 13th Apr 18, 1:51 PM
    • 2,120 Posts
    • 5,583 Thanks
    Loanranger
    • #6
    • 13th Apr 18, 1:51 PM
    • #6
    • 13th Apr 18, 1:51 PM
    It's unearned income, so I think the rules are different. Check your pension forecast.
    • JennyP
    • By JennyP 13th Apr 18, 1:53 PM
    • 944 Posts
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    JennyP
    • #7
    • 13th Apr 18, 1:53 PM
    • #7
    • 13th Apr 18, 1:53 PM
    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
    • By Xbigman 13th Apr 18, 2:38 PM
    • 3,124 Posts
    • 1,358 Thanks
    Xbigman
    • #8
    • 13th Apr 18, 2:38 PM
    • #8
    • 13th Apr 18, 2:38 PM
    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
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • JennyP
    • By JennyP 13th Apr 18, 2:53 PM
    • 944 Posts
    • 722 Thanks
    JennyP
    • #9
    • 13th Apr 18, 2:53 PM
    • #9
    • 13th Apr 18, 2:53 PM
    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
    Originally posted by Xbigman
    Thanks Darren.
    Glad I checked as you are right and I haven't paid enough!
    • pmlindyloo
    • By pmlindyloo 13th Apr 18, 4:47 PM
    • 11,756 Posts
    • 13,623 Thanks
    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
    • By Darksparkle 13th Apr 18, 9:49 PM
    • 5,257 Posts
    • 3,415 Thanks
    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.
    • tacpot12
    • By tacpot12 13th Apr 18, 10:25 PM
    • 1,285 Posts
    • 1,113 Thanks
    tacpot12
    The HMRC manual at this page gives guidance on the level of activity that constitutes a business https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim23800

    If you aren't running a business, you aren't required to pay national insurance contributions regardless of the profit that arises from the investment.
    • xylophone
    • By xylophone 14th Apr 18, 3:52 PM
    • 26,139 Posts
    • 15,496 Thanks
    xylophone
    If you are not running a business and so will not pay NI on this income, see

    https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
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