only source of income from property
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Gold_Anaconda wrote: »I also want to pay NIC of course so I'll be paying that either way.
You can't pay class 2 NIC if you're not self employed.
Having and renting one property is highly unlikely to be self employment as it's not a "business" if you're just passively renting out a property.
Being a "business" means more, i.e. providing other services besides the property, such as providing recreational facilities, such as a swimming pool, fishing lake, or providing meals, or providing day trips etc, i.e. more of a "holiday" business rather than renting out a house. In fact a "holiday letting" is a business for some tax purposes.
The other way it becomes a business is if you have multiple properties and start to spend a lot of time managing them, i.e. getting tenants, chasing arrears, doing repairs, etc. But you do have to spent a lot of time, so we are talking about several properties, not just one!
Unless you're providing other services, with just 1 property, you're not self employed/in business. The incomes/profits are declared on the property pages of your SA tax return, not the self employment pages.0 -
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you have missed the fact that income from property is a SEPARATE category in its own right. It is neither employment income, self employment income, nor investment income.Gold_Anaconda wrote: »It matters because when it comes to self assessment there is a self-assessment for self-employed and a sell assessment for non-self employed.
Please read before writing pointless comments.
That is why there are separate pages on your tax return called UK property pages. The reason being that HMRC has fought a successful action to prevent rental income from being classed as trading income and therefore enabling losses to be offset against other employment or self employment income. Losses incurred from property letting can only be offset against future profits. They cannot be backdated, nor can they be claimed against other sources of income.
The main exception being Furnished Holiday Lets (FHL) and Bed & Breakfast activity both of which are categorically accepted to be trading income and therefore subject to the rules for trading losses.0 -
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Could OP be eligible to pay voluntary class 3 contributions?
https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions0 -
You register for self-assessment to declare the property income. You fill out just the property pages. You pay no NI unless you wish to do so voluntarily to get a credit to state pension.
Your questions are all valid and reasonable. It is HMRC and their stupid rules and crassly designed forms where the fault lies here, as so often.Hideous Muddles from Right Charlies0 -
Some Airbnb activities will be self-employment; even if there is only 1 property; depending on the level of services provided to the visitors.0
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It's quite simple. If you have property giving you rental income alongside a job then fill out the property pages.
If you are doing it as your main source of income it's classed as your business so fill out the self-employed pages.0
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