Investor (neither employed nor self-employed) eligibility for voluntary Class 2 NICs

HMRC advice on who can pay voluntary class 2 NICs (https://www.gov.uk/pay-class-2-national-insurance) mentions the following: “a person who makes investments - but not as a business and without getting a fee or commission” Further advice (https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim74250) says that a Tier 2 investor can pay voluntary class 2 NICs, and classes this person as: “a person with a substantial undertaking in … investment related activities” but without doing so as part of a trade, profession, or vocation. So I am now trying to understand what would qualify as a substantial undertaking in investment related activities. Does this relate to: - The total value of all investments? - The number of different equities held? - The number of trades in a given time period? - The amount of time spent researching investments? - The amount of money drawn down from the investments in a given time period? Do funds and trades in tax-efficient wrappers such as ISAs and SIPPs count towards this? Does the activity of an agent (e.g. an investment professional, or robo-advisor firm) on my behalf count towards this? Does the activity of a manager of an actively managed ETF I invest in count towards this? For each of the following people, do their investment activities constitute a substantial undertaking in investment related activities?: Person A: Has £100k total investments across ISAs and SIPPs, passively invested in ETFs, via a robo-adviser platform. Person B: Has £500k total investments, which they invest in stocks/ETFs, and invest a further £1k per month in a set portfolio of stocks/ETFs. Person C: Has £2m total investments, which they invest in stocks/ETFs, tweaking their portfolio on average once every quarter, and draw down about £100k per year in interest, dividends and equity sales. Any help on this matter would be gratefully appreciated.

Hi,

This is not something that can be advised on via this forum. We need specific information about you and your circumstances before this can happen.

If you are wanting to register as Self employed you can look at the information available at GOV.UK

If you need to declare tax but not be registered as self-employed you will still need to register for self assessment.

Check how to register for Self Assessment

If you are still unsure you will need to contact us directly via telephone or in writing.

Thank you.
 

I am am registered for self assessment, but I am not self-employed. I earn no income from work. I have £500k invested in ETFs, which I select myself and buy on a brokerage platform. Am I eligible to pay voluntary class 2 NICs? Many thanks.

Hi BobJ79,
Please see further information regarding voluntary Class 2 National Insurance contributions for Investors in the following link -
NIM74250 - Class 2 National Insurance contributions: special cases: property and investment income 
After reading this, if you require any further advice, please contact the National Insurance helpline on 0300 200 3500. Lines are open Monday to Friday from 8am to 6pm.
Thank you.