Renewal refusal

In response to an application for a renewal of exception from liability to Class 2 NICs my client has received a letter from HMRC’s Self Employment Services stating that her net profits for 2010/11 exceeded the small earnings exemption (SEE) of £5 315 and the application has been refused.

In 2010/11 my client did not carry out any self-employment work (so had nil profits) but was employed received rental income from two residential properties and had sundry interest and dividend income. Her self-employment status continues in the hope that work will crop up.

Upon contacting HMRC’s Self Employment Services team I was told that the application was turned down because the department had received information stating that my client was now receiving income from a third property.

According to HMRC as she now manages a ‘portfolio’ of properties (i.e. more than two)...