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Where Taxpayers and Advisers Meet

property income - Do I qualify as a sole trader

chocaholic
Posts:23
Joined:Wed Aug 06, 2008 3:26 pm
property income - Do I qualify as a sole trader

Postby chocaholic » Tue Apr 16, 2024 3:14 pm

So, I have about 6 properties in the UK on which have been paying taxes on the profits, going back as far as 1995.
I would like to qualify for paying class 2 NI contributions.
I believe that in order for this to happen, I need to be able to show that I am a sole trader and not just someone who takes in passive income.
I called HMRC who advised that if I am actively involved in the management or operations, then I could make the case that this is a business and not a passive investment. I would have to register a company with companies house.
Is there any way to register as a sole trader? I dont want to go the companies house route.
Any advice would be appreciated.

pawncob
Posts:5110
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: property income - Do I qualify as a sole trader

Postby pawncob » Tue Apr 16, 2024 7:52 pm

https://www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension/voluntary-national-insurance-contributions-and-the-state-pension
With a pinch of salt take what I say, but don't exceed your RDA

Jholm
Posts:370
Joined:Mon Mar 11, 2019 4:22 pm

Re: property income - Do I qualify as a sole trader

Postby Jholm » Thu Apr 18, 2024 9:04 am

Seek professional advice.

Just because you can register as a sole trader for this doesn't mean it will actually be considered as such (ie. trading, not investment income).

There have been many cases where people have argued this and failed, so real care should be taken to ensure it actually constitutes trading activity.


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