No NIC due on rental income

Class 2 NICs are payable by the self-employed at the rate of £2.75 per week, although there is a small earnings exemption for those earning up to £5,885. It is understood that HMRC believe Class 2 NICs also apply to buy-to-let landlords. This is not correct and was tested in a case before the Tax Commissioners back in 2002 (Rashid v Garcia), when it was determined that property income was not applicable for Class 2 NIC purposes. Please get in touch with us if you receive a demand from HMRC for Class 2 NICs or a questionnaire requesting details of your property rental activities.


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Harris+Co is a trading name of Harris & Co Limited, which is a limited company registered in England & Wales: No. 8935187, Registered Office: Marland House, 13 Huddersfield Road, Barnsley, South Yorkshire S70 2LW. The term partner indicates a principal of Harris & Co Limited who is not in partnership for the purpose of the Partnership Act 1890. A full list of principals’ names is available at the Registered Office. Registered to carry on audit work in the UK and regulated for a range of investment business and consumer credit activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk for the UK under reference C003785105.