Maximizing retirement income

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Maximizing retirement income

    Hi
    can anyone offer me some sensible advice,
    i currently own 4 properties that i let out,

    i am soon to retire and wondered what the situation is regarding paying national insurance contributions on my income

    the properties are owned 50/50 with my wife . She will have a small work pension but i will only have the income from the properties,.

    We will both be under the legal retirement age

    Would i have to pay national insurance as well as tax, if so would it be better for me to set up as a sole trader and pay it this way

    i have scoured the web but cant find any sensible advice
    thanks
    dan
    Last edited by danmay; 22-03-2015, 11:05 AM. Reason: added some extra clarity

    #2
    I was reading up on this the other day. See below.

    https://www.gov.uk/national-insurance

    Comment


      #3
      I've not paid NI since reaching state pension age.
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Thanks for the link, i forgot to mention that i am still 10 years off the state retirement age so the no contribution rule i think still applies

        Comment


          #5
          It is most unlikely that a rental business will amount to a trade, so Class 4 NIC should not apply.

          However, Class 2 NIC might apply. This could be somewhat academic if the Budget 2015 proposal to abolish Class 2 goes ahead.

          Comment


            #6
            How many years contributions have you made so far. I think if 35 years you do not need any more (on current rules) payments to recieve full state pension. So if you've worked from 18 to 55(37 years) you should be ok.

            Comment


              #7
              Cautionary tale:

              The wife gets a bit less that full state pension due to incomplete NI payments, and she reached state pension age before me (blatant sex discrimination btw...). I topped mine up with £££££ as when I did top up rules said I should... Govt changed the rules, I had not needed to & would have got what I get, full state pension.

              Moral: They get you, one way or another....
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


                #8
                yes i have pad in for 35 years , i was more concerned about if i have to continue to pay and if i did would i be liable to pay
                thanks
                dan

                Comment


                  #9
                  Go to Gov.uk/DWP & ask for a pension estimate:They'll tell you how you stand re. contributions (and also their records are different from yours - eg I found I'd worked for someone for 2 years who had my NI down with 1 digit wrong: Bet when you look at your payslip there's only one number you usually check..)

                  https://www.gov.uk/state-pension-statement

                  At some point, with benefits spend being more than 50% on old people (me included) some chancellor is going to start cracking down on the real benefit costs, not fiddle round the edges being unpleasant to the disabled or hard-of-thinking as now......

                  Cheers!
                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                  Comment

                  Latest Activity

                  Collapse

                  • Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

                    1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
                    06-12-2021, 13:51 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    Thank you Gordon, didn't see your response this afternoon. I will look at this with fresh eyes tomorrow as it's late now.
                    I've put some figures in my reply to a post just now but answers below to your questions.

                    a] £80k Jan 2021 sale price.
                    b] As property purchased before...
                    08-12-2021, 00:55 AM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    Andrew, apologies only just seen your post [was it awaiting approval did you say?] answers are:

                    Purchased March 1982 as joint tenancy - so equal split of 33 1/3% each party
                    Parent 2 died September 2007 - as joint tenancy I inherited their share - so at this point I own 100% of property...
                    08-12-2021, 00:41 AM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    JP Keates
                    I wasn't aware that refurbishment deductions only applied in terms of letting out the property. On the CGT calculator it asked 'How much have you spent on improvements since you became the property owner'.....

                    Here's the timeline:

                    March 1982 - 1992 3 Owners,...
                    07-12-2021, 18:01 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    JP Keates et al - thank you very much for your assistance. I have this afternoon emailed an accountant to try and get an appointment urgently. I hadn't realised it was all so complicated and it was remiss of me to not be aware of the CGT changes made in 2020 due to not renting out the property. Thanks...
                    07-12-2021, 17:28 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by jpkeates
                    Refurbishment while you were living there is only allowable against CGT if it was solely and exclusively for the business, so if it was to prepare the property to be let, it would be OK.
                    If it was simply to improve what was then your home, it fails the basic test.

                    Get yourself to...
                    07-12-2021, 16:22 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by AndrewDod
                    The probate resets a lot of the stuff, but my main response was unapproved
                    07-12-2021, 15:36 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by AndrewDod
                    You are really short on detail:

                    Date (year & month) bought in joint names ______ (what % was yours then)
                    Date it converted to your sole name ______ (presumable date of death of parent 2?)
                    Declared vale at probate _________
                    Capital expenses between date of probate 2...
                    07-12-2021, 15:33 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by reluctantlandlord1976
                    We were all joint owners. Bought it with parents. I lived there for 10 years before buying own home. I became sole owner upon their deaths. Rented out since 2007-2019. Empty last two year as trying to sell. Hence I was off the landlord radar. I am now extremely worried by your statement that refurbishment...
                    07-12-2021, 14:53 PM
                  • Reply to Caught out by changes to Capital Gains Tax
                    by AndrewDod
                    Let us know the exact timescale and money involved year by year - I am sure some kind person (or even myself) with do a calculation for you so that you can assess the risks involved
                    07-12-2021, 14:33 PM
                  Working...
                  X