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  • FIRST POST
    • delmonta
    • By delmonta 13th Oct 16, 11:06 AM
    • 32Posts
    • 6Thanks
    delmonta
    National Insurance on rented house income...
    • #1
    • 13th Oct 16, 11:06 AM
    National Insurance on rented house income... 13th Oct 16 at 11:06 AM
    Hi

    I bought a house a year ago and lived in it for 7 months, and ended up deciding to move back to the country for a while. So I rented it out through an agent who deals with everything now. I have a monthly income from the rent.

    I have been reading the HMRC website, and am confused whether I have to pay Nation Insurance or not. I am not working otherwise at the moment due to health problems, but I do not plan for the house income to be my main income. I have read various forum posts and info elsewhere saying seemingly contradictory things. And people like this :

    http://www.larking-gowen.co.uk/blog/national-insurance-contributions-on-rental-income/

    Does anyone know anything about this, as I am quite confused? I have never been self employed before, and am trying to work this all out!

    Thanks
Page 1
    • Guest101
    • By Guest101 13th Oct 16, 11:36 AM
    • 11,966 Posts
    • 11,417 Thanks
    Guest101
    • #2
    • 13th Oct 16, 11:36 AM
    • #2
    • 13th Oct 16, 11:36 AM
    Whats the monthly rental income?
    • delmonta
    • By delmonta 13th Oct 16, 11:39 AM
    • 32 Posts
    • 6 Thanks
    delmonta
    • #3
    • 13th Oct 16, 11:39 AM
    • #3
    • 13th Oct 16, 11:39 AM
    After landlord fees, about £1000
    • Guest101
    • By Guest101 13th Oct 16, 11:51 AM
    • 11,966 Posts
    • 11,417 Thanks
    Guest101
    • #4
    • 13th Oct 16, 11:51 AM
    • #4
    • 13th Oct 16, 11:51 AM
    After landlord fees, about £1000
    Originally posted by delmonta


    What are 'landlord fees'?


    It sounds like it's possible, I've read the link and it certainly isn't clear. Given this is your sole income it may be worth paying as otherwise you wont have any NI contributions to your name, which is not going to help long term
    • bobbymotors
    • By bobbymotors 13th Oct 16, 12:08 PM
    • 338 Posts
    • 420 Thanks
    bobbymotors
    • #5
    • 13th Oct 16, 12:08 PM
    • #5
    • 13th Oct 16, 12:08 PM
    Renting as a landlord does not count as self employment - yes it is strange - so you will need to make voluntary class 3 NIC to get your old age pension in full.
    • anselld
    • By anselld 13th Oct 16, 12:48 PM
    • 4,869 Posts
    • 4,319 Thanks
    anselld
    • #6
    • 13th Oct 16, 12:48 PM
    • #6
    • 13th Oct 16, 12:48 PM
    The rent is irrelevant. Rental income is classified as investment income. It is not employment or self-employment even if you do nothing else. Hence NI does not apply.
    • delmonta
    • By delmonta 13th Oct 16, 8:18 PM
    • 32 Posts
    • 6 Thanks
    delmonta
    • #7
    • 13th Oct 16, 8:18 PM
    • #7
    • 13th Oct 16, 8:18 PM
    Ah ok, so I dont have to pay it by the sounds of it.

    I have not been self employed before so have not done a tax return. Do I have to fill it out differently if as you say the house income is an investment income not employment? Dont want to get it wrong
    • sheramber
    • By sheramber 13th Oct 16, 8:22 PM
    • 2,724 Posts
    • 2,110 Thanks
    sheramber
    • #8
    • 13th Oct 16, 8:22 PM
    • #8
    • 13th Oct 16, 8:22 PM
    You complete property pages in addition to the basic return and any other pages needed

    https://www.gov.uk/government/publications/self-assessment-uk-property-sa105
    • delmonta
    • By delmonta 13th Oct 16, 8:25 PM
    • 32 Posts
    • 6 Thanks
    delmonta
    • #9
    • 13th Oct 16, 8:25 PM
    • #9
    • 13th Oct 16, 8:25 PM
    So as I dont have any other income right now, then I just have to fill out that form, or I have to complete the basic tax return too, but with nothing to put in it?
    • delmonta
    • By delmonta 13th Oct 16, 8:26 PM
    • 32 Posts
    • 6 Thanks
    delmonta
    And also....do I have to register as self employed at all if I only have this property income? As you said it is not employment

    Thanks
    • anselld
    • By anselld 13th Oct 16, 10:38 PM
    • 4,869 Posts
    • 4,319 Thanks
    anselld
    And also....do I have to register as self employed at all if I only have this property income? As you said it is not employment

    Thanks
    Originally posted by delmonta
    Do not register as self employed.
    Basic return plus property page. It is easier to register and do it all only be under HMRC self assessment.
    • delmonta
    • By delmonta 14th Oct 16, 10:16 AM
    • 32 Posts
    • 6 Thanks
    delmonta
    Ok so no need to register as self employed. Thanks

    Thanks
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