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No NIC due on rental income

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 on 020 8686 8876 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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Cruse & Burke,
73 Park Lane,
Croydon,
CR0 1JG

Tel: 020 8686 8876

Email: info@cruseburke.co.uk

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