Help with nic...class 2 or 3?

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    Help with nic...class 2 or 3?

    Hi Everyone

    Hoping someone could help.

    So I started my property business in 2006, after leaving work.

    I have built up a portfolio of 11 properties, last one added in 2013.

    I managed the properties myself and continued to seek adding to my protfolio throughout those years.

    I left to go abroad part way through 2013.

    I have paid no NICs in all this time.

    I now would like to pay nics for the years 2006 to 2013.

    I sent in my application to pay NIC whilst abroad form.

    I have received a rely saying I can pay as follows: the time I was abroad would be subject to class 2 but the time I was in the UK, should be class 3.

    I thought using the HMRC definition/rules I should have been paying class 2 during the time I was in the Uk.

    1)Can anyone advise if I should be paying class 2?

    2) My other concern is, if I am liable to class 2, should I have paid these in the years they fell due, and will I be penalised for this?

    Thanks for any advice.

    #2
    Unless you are 60+ already, I would forget about NIC's. I doubt that any pension will be worth having when we finally become entitled to one. Plus of course they keep extending the age when you qualify. 11 properties should keep the wolf from the door, and no doubt pensions will be means tested in due course.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      I believe you can only make up payments at class 2 rate in the 6 years prior to when you want to pay arrears, but things might have changed since I last looked into it. That may well be why they are asking for the more expensive class 3 rate.

      Comment


        #4
        Assume you made a declaration to HMRC regarding income tax while you were abroad?

        Comment


          #5
          Broadly speaking, if you leave the UK for full-time employment and remain out of the UK for more than a complete tax year, you don't have to declare any foreign income to HMRC, even if you repatriate the earnings.

          Comment


            #6
            It wouldn't have been foreign income though

            Comment


              #7
              sorry i assumed you were talking about overseas income rather than income from UK property

              Comment

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