I have been reading about changes that the government are proposing and their idea for landlords to pay National insurance on their rental income. Will this apply to retired landlords using their rental income as their retirement fund? I’m hoping not. I read the following:
“Meanwhile, the ageing landlord profile means a third will be exempt from paying any national insurance by virtue of being retired, often those with the largest portfolios.”
I’ve been trying my best to plan to be able to support myself when it’s my time to retire, but it all seems to be getting harder don’t you think!
It’s def getting harder but currently, if you reach state pension age, you stop paying NI anyway, even if you keep working. If you’re paying voluntary contributions (e.g. overseas LL) it’s currently up to you.
As with all govt waffle… it’ll happen IF it happens and we’ll just deal with it then.
Personally, having had a rental portfolio for nearly 30 years, the last thing I want is to have high risk demanding investments like rental properties when I’m at retirement age. My plan is therefore to move all those assets into lower risk more passive (and obvs lower return) investments by that point. Personally, I don’t think the rental game and retirement compliment each other at all well.
Unless you have registered with HMRC to be considered a business / self employed through your letting activities I’ve been informed by HMRC that letting income is considered to be investment income.
I couldn’t say for sure but IMHO they will be struggling to term this as earned income.
If they go down this route anyway, then I would expect all investments, stocks & shares etc. to be charged accordingly. I’m not holding my breath…!
They just know the sums aren’t adding up at the moment and they’re desperately searching for anything to help balance the books. Of course they’ll look at us, we are the perfect cash cow as we’re just money grabbing b@st@rds in the eye of much of the public.
My attitude is I’ll start worrying the moment any proposals start looking like becoming the new reality.