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  • FIRST POST
    • Peck06
    • By Peck06 16th May 18, 11:51 AM
    • 1Posts
    • 0Thanks
    Peck06
    Class 2 NI Voluntary contributions, is it worth it?
    • #1
    • 16th May 18, 11:51 AM
    Class 2 NI Voluntary contributions, is it worth it? 16th May 18 at 11:51 AM
    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
Page 1
    • Dox
    • By Dox 16th May 18, 12:16 PM
    • 1,034 Posts
    • 804 Thanks
    Dox
    • #2
    • 16th May 18, 12:16 PM
    • #2
    • 16th May 18, 12:16 PM
    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-contributions
    • Terron
    • By Terron 16th May 18, 12:17 PM
    • 350 Posts
    • 296 Thanks
    Terron
    • #3
    • 16th May 18, 12:17 PM
    • #3
    • 16th May 18, 12:17 PM
    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.
    • Asghar
    • By Asghar 16th May 18, 12:24 PM
    • 217 Posts
    • 142 Thanks
    Asghar
    • #4
    • 16th May 18, 12:24 PM
    • #4
    • 16th May 18, 12:24 PM
    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
    Originally posted by Peck06

    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.
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