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only source of income from property

Legacy_user
Legacy_user Posts: 0 Newbie
edited 14 March 2019 at 9:37PM in Cutting tax
«1

Comments

  • laticsforlife
    laticsforlife Posts: 1,315 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Why does it matter?

    You still have (taxable) income from property (IFP), to be declared on the relevant page on a Self-Assessment tax return.
    I didn't do it, nobody saw me do it, you can't prove a thing!
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  • System
    System Posts: 178,426 Community Admin
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    edited 14 March 2019 at 9:37PM
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    "Running a property business

    You have to pay Class 2 National Insurance if your profits are over £5,965 a year and what you do counts as running a business, for example if all the following apply:

    • being a landlord is your main job
    • you rent out more than one property
    • you’re buying new properties to rent out"

    https://www.gov.uk/renting-out-a-property/paying-tax
  • System
    System Posts: 178,426 Community Admin
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    edited 14 March 2019 at 9:37PM
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  • laticsforlife
    laticsforlife Posts: 1,315 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    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.

    Well in that case it's bl00dy daft, as it makes no difference does it!!

    Mind you in won't be the first daft thing HMRC has - a question with more than 2 answers.

    I'm therefore going with Yes, put yourself as self-employed. No hang on that doesn't seem right, answer No, you are not s/e. Nope that doesn't sound right either.

    Sorry, no idea now :eek:
    I didn't do it, nobody saw me do it, you can't prove a thing!
    Quidco and Topcashback, £5,687
    ShopandScan, £3,470
    Tesco Double The Difference, £2,700
    Thomson EU261/04 Claim, £1,700
    British Airways EU261/04 Claim, EUR1200
  • laticsforlife
    laticsforlife Posts: 1,315 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Gold_Anaconda wrote: »
    An accountancy firm has told me that income from property is not being self-employed. Very hard to get a straight answer to this.

    I do not rent more than one property.

    I think the answer means that if you have a business of renting properties (i.e. more than 1) then that's clearly a business, so is s/e, but if you just say rent out mum's old house, then you clearly aren't running a commercial business, so it's a no.

    Maybe!
    I didn't do it, nobody saw me do it, you can't prove a thing!
    Quidco and Topcashback, £5,687
    ShopandScan, £3,470
    Tesco Double The Difference, £2,700
    Thomson EU261/04 Claim, £1,700
    British Airways EU261/04 Claim, EUR1200
  • System
    System Posts: 178,426 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 14 March 2019 at 9:38PM
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    If you only have one property then you are not self employed.
  • TheCyclingProgrammer
    TheCyclingProgrammer Posts: 3,702 Forumite
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    laticsforlife wrote: »
    Well in that case it's bl00dy daft, as it makes no difference does it!!

    Mind you in won't be the first daft thing HMRC has - a question with more than 2 answers.

    I'm therefore going with Yes, put yourself as self-employed. No hang on that doesn't seem right, answer No, you are not s/e. Nope that doesn't sound right either.

    Sorry, no idea now :eek:

    It does make a difference.

    You pay income tax in both cases but if you’re running a property business and therefore treating yourself as self employed then you will also have NIC to pay.

    In OPs case it sounds like normal property income.
  • System
    System Posts: 178,426 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 14 March 2019 at 9:38PM
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
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