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Where Taxpayers and Advisers Meet

NI and Rental Income

shrinknz
Posts:6
Joined:Wed Aug 06, 2008 3:52 pm
NI and Rental Income

Postby shrinknz » Sun Mar 28, 2021 10:27 am

Book : “How to save Tax 2021/2022”

“ One advantage of rental income is that it is generally exempt from NI” .

My accountant said that NI still needs to be paid on rental income . I am confused . My accountant is not a specialist landlord /BTL accountant .

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: NI and Rental Income

Postby robbob » Sun Mar 28, 2021 12:16 pm

Here is an article that explains the issue better than i could do quickly

https://www.property-tax-portal.co.uk/do-landlords-need-to-pay-class-2-nics.shtml

compare this to the billy basic hmrc advise from hmrc - note the billy basic hmrc guidance can often be misleading as they often add their own "spin" to guidance that may have no grounding in reality.

Class 2 NI advise from hmrc
You have to pay Class 2 National Insurance if your profits are £6,475 a year or more 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

shrinknz
Posts:6
Joined:Wed Aug 06, 2008 3:52 pm

Re: NI and Rental Income

Postby shrinknz » Sun Mar 28, 2021 2:25 pm

Thanks for this very helpful response . I have found it very helpful . 🙏


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