X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    Abolition of Class 2 NICs

    Last month the government published it's response to the consultation on the abolition of class 2 National Insurance Contributions.

    Currently self-employed landlords can volintarily pay Class 2 NICs which are less than £150 a year and a real bargain when it adds to your state pension entitlement.

    The response says

    Group 3: Those who are treated as self-employed specifically for NICs purposes and other groups affected by this change

    4.18 Those in this group are:

    • examiners
    • foster carers
    • Ministers of Religion
    • some landlords

    4.19 For these groups, the abolition of Class 2 NICs will mean that:

    • individuals liable for Class 4 NICs (such as examiners and foster carers) will be able to gain access to contributory benefits through the new Class 4 NICs benefit test
    • individuals who are unable to meet the conditions of the new Class 4 NICs benefit test will be able to use NI credits or pay Class 3 voluntary NICs to gain access to the State Pension

    Currently Class 4 NICs are only due on income from trade professions and vocations, so that would leave landlords paying class 3 NICs, currently over £700.

    So it would seem a good idea to pay Class 2 NICs for this and next year if they would increase your state pension.

    2
    0

    Class 4 nic's are based on self employed profit, not profession and are payable on profits over £8,100 or thereabouts

    1
    0