Our accountant has advised us that HMRC have started to issued demands for Class 2 NIC (National Insurance Contributions) to
property landlords. This is a very worrying trend, particularly with HMRC
able to assess individuals for up to 6 prior tax years. In recent
correspondence, HMRC have stated:
“Please note that the taxpayer may be considered as self
employed through his property income, and as such may be liable to Class 2 national
insurance contributions.”
However, in 2003 there was a Special Commissioners’ case on
this topic in which they held that the taxpayer was not a self-employed
earner for NIC purposes. Accordingly, his rental activities did not
require him to pay Class 2 NIC. In our opinion, this should be the end of
it, but in some correspondence they are ignoring this case and sending
out a nine point questionnaire!
If you receive such an approach from HMRC
we would recommend that you seek expert advice. It is worthwhile chatting it through with David and his contact details are:
David Tilsley Limited
Chartered Certified Accountants & Chartered Tax Advisers
91
Lakewood Road
Chandlers
Ford
Eastleigh
SO53
5AD
Tel:
023 80 254900
e-mail: david@dtlimited.co.uk
No comments:
Post a Comment