From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: Letting & Tax Question
Date: Mon, 18 Apr 2005 00:36:18 +0100


"NJ"  wrote in message 
news:d3upf5$ln5$1@hercules.btinternet.com...
>
> "Ronald Raygun"  wrote in message 
> news:Nhe8e.13577$G8.3064@text.news.blueyonder.co.uk...
>> Neil Jay wrote:
>>
>>
>>> As an aside, I have an exemption from the N.I. office and do not have to
>>> pay any additional N.I. payments as the letting profits are less than
>>> £4.2K p.a. Would the tax threshhold not be the same as the N.I. one ?
>>
>> Exemption?  What for?  Are you self-employed as well?
>> There is no NI on letting profits, no matter how large.
>
> Well, I informed the tax office that I was employed full-time and had 
> recently become a landlord. The tax office sent me N.I. forms to complete. 
> They regard being a landlord as being self-employed; I have no other 
> self-employment.
>
> I currently pay N.I. via my employer but according to the tax office, you 
> have to pay additional N.I. contributions if you are self-employed in 
> addition to being an employee; they take the N.I. contributions via D.D. 
> (£2.10 per week). Because the profits from letting my property are less 
> than the threshold of £4,215, I was able to apply (successfully) for an 
> exemption certificate.
>
> Seems a load of tosh to me too - but it's all down in black & white in 
> Form CA 02 " National Insurance contributions for self-employed people 
> with small earnings ".
>
> To me, being a landlord is not exactly being self-employed; I have twice 
> queried this with the tax office and have twice been informed that this is 
> the case...
>
> I can see now why I have to complete a Tax return ( as I am receiving 
> income that is not being taxed at source, the I..R. obviously need me to 
> state how much profit I am making from this additional income and tax me 
> at 22% accordingly ). At the end of the day, the profit minus tax is only 
> a few rounds down the pub :o(
>
> Many thanks for everyones help !
>
> Neil.
>

Property rental is an investment, not a business - so no Class 2 nor Class 4 
NIC is payable.
-- 
Doug Ramage

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