How do I pay voluntary Class 2 contributions to fill gaps in my NI record (property business)

I run a property business and believe I meet your criteria as per NIM74250, at Tier 2 (in my case, >10 properties, including 3 FHL’s, actively growing business, and this is my only work) I complete a self-assessment tax return each year but no NI contributions are collected as part of this process. I have followed the link ‘Check how to register with HMRC’ at this webpage: https://www.gov.uk/pay-class-2-national-insurance, but this just takes me to a page about registering for self-assessment, for which I am already registered. My understanding is that I can pay voluntary contributions for previous years(up to 6?); how do I start the process to do this?

Hi,
You can register as self employed on line via your PTA or government gateway:
If you already have a SA account you will need to register via your SA account as a self employed person.
Check how to register for Self Assessment
As a sole trader What a sole trader is
More information can be found Self-employment: detailed information
Thank you.

I am already registered for self-assessment, and report my profits through SA each year. As per PIM1020 my rental business profits are computed using the same principles as for calculating the profits of a trade but I am not actually treated as if I am trading, therefore I should not register as self-employed. Also as per NIM74250 I am not gainfully employed for self-employed NICs purposes. My property income is reported through the UK Property section of my SA, not the Self-employment section. SO the guidance to register as self-employed does not seem correct? My question relates to how I go about making voluntary Class 2 contributions for previous years (which I understand is possible as per https://www.gov.uk/voluntary-national-insurance-contributions and as per NIM74250) . The reply above does not answer this question?

Hi David,
As you are not gainfully employed for self-employed NICs purposes you cannot pay Class 2 NICs.
You may wish to consider paying voluntary Class 3 NICs.
Thank you. 

 

Thank you for the response I don't think this conclusion is correct for my situation – but due to me making an incorrect statement re gainful employment - apologies! I meet the Tier 2 definition in NIM74250 (Class 2 National Insurance contributions: special cases: property and investment income) – and therefore I AM considered as gainfully employed (my earlier statement on this was in error); however as per the same "Tier 2" section of NIM74250 I do not pass the “ trade, profession or vocation test for an Income Tax charge to arise under Chapter 2 of Part 2 of ITTOIA 2005” on my profits and therefore not liable to pay Class 2 NICs under section 11(2) of SSCBA 1992 (although I am taxed on my property/investment income under SA). Section 11(6) of SSCBA 1992 provides that such individuals are entitled to pay Class 2 NICs voluntarily: “If the earner DOES NOT HAVE RELEVANT PROFITS of, or exceeding, the small profits threshold, the earner may pay a Class 2 contribution of £3.45 in respect of any week in the relevant tax year that the earner is in the employment.” HMRC documents are consistent with this conclusion: As per PIM1020: "Profits from UK land or property are treated, for tax purposes, as arising from a business" "rental business profits are computed using the same principles as for calculating the profits of a trade BUT THE TAXPAYER IS NOT ACTUALLY TREATED AS IF THEY WERE TRADING" In accordance with these statements, my profits are correctly reported through self-assessment using the property pages, correctly, but no NI is collected through self-assessment The following webpage explains "Pay Class 2 National Insurance if you do not pay through Self Assessment" : https://www.gov.uk/pay-class-2-national-insurance ...and specifically covers my situation in terms of paying Class 2 contributions, with direct reference to a property business: "You may also choose to pay because you are not eligible to be treated as having paid Class 2 contributions. This applies if you’re any of the following: an examiner, moderator, invigilator or person who sets exam questions a minister of religion who does not receive a salary or stipend a person who makes investments - but not as a business and without getting a fee or commission RUNNING A BUSINESS INVOLVING LAND OR PRPERTY" It seems very clear in both the HMRC/NI documents and SSCBA 1992 that in my situation I can choose to pay Class 2 contributions but I cannot pay via Self Assessment as PIM1020 states I am not treated as if I was trading (and my property income must be reported on the SA property pages, not via SA self-employment pages) So as per my original question, how do I go about paying these voluntary contributions as per Section 11(6) of SSCBA 1992 ?

Hi,
You will need to register to pay Class 2 NICs voluntarily.
This can be done on line – Pay Class 2 National Insurance if you do not pay through Self Assessment or by calling the NI helpline on 0300 200 3500.
Lines are open 8am – 6pm Monday to Friday.
Thank you.

The link above does not work, please advise correct link

Hi,
I have re-posted the link and checked that it now works, please accept our apologies for any inconvenience.
Thank you.

The link works, and takes me to a webpage with title: "Pay Class 2 National Insurance if you do not pay through Self Assessment" - which is promising However the section "Registering to pay Class 2 contributions: Pay Class 2 National Insurance if you do not pay through Self Assessment" , takes me to another webpage which is about registering for Self Assessment (and doesn't mention NI or voluntary Class 2), but as I have explained above I am already registered for Self Assessment and complete annually so this doesn't help

Hi,
You can no longer register as Self-employed without also registering for SA.
This is because the Class 2 NICs are collected when you submit the tax return.
If you have not earned enough throughout the tax year there is an option to pay voluntarily when submitting the SA returns.
You can no longer opt to fill in gaps by paying class 2.
Class 2 NICs are for Self employed individuals and although running a property business falls under this category you will still have to submit SA returns for all affected tax years.
Thank you.

Please see my original post in this thread - I am already registered for SA and have completed SA for many years, however no Class 2 NI are calculated or collected as I complete the SA property pages, not the self-employed pages. However as per my subsequent post in this thread (26/7/24) and specifically the HMRC & SSCBA documents referenced, I can choose to pay Class 2 contributions but I cannot pay via Self Assessment - so I'm still no clearer how I actually do this!

Hi David,
Some customers with income from property may be eligible to pay Class 2 NICs voluntarily.
The guidelines are here - NIM74250 - Class 2 National Insurance contributions: special cases: property and investment income
If , after reading this, you feel you are entitled to pay Class 2 NICs, you can register to pay online via our website or by calling the NI helpline on
0300 200 3500. Lines are open 8am – 6pm Monday to Friday.
Thank you.
 

Thank you - this confirms my understanding as per my original question in this thread (my case is as per 'Tier' ion NIM74250). However I am still no clearer where exactly I can do this: "you can register to pay online via our website" - I already complete a Self-Assessment tax return each year but no NI contributions are collected as part of this process. I have followed the link ‘Check how to register with HMRC’ at this webpage: https://www.gov.uk/pay-class-2-national-insurance, but this just takes me to a page about registering for self-assessment, for which I am already registered.

Hi David,
In light of the problems you are encountering registering to pay voluntary Class 2 NICs I would recommend calling the National Insurance helpline on 0300 200 3500 who will complete the registration on your behalf.
Thank you.