.png)
.png)
The question of property income creating a class 2 National Insurance liability causes some head-scratching.
KEY POINTS:
- Class 2 National Insurance has been reformed by NICA 2015.
- A self-employed earner is defi ned as being in “gainful employment”.
- When does a business constitute self-employment?
- Voluntary class 2 contributions may be paid.
Picture the scenario. A client comes to his adviser saying: “I am a landlord of four properties. My friend at the golf club said he had to pay National Insurance contributions on the income from his property portfolio. I thought it was only due on wages. Surely I shouldn’t have to pay National Insurance on rental income?”
Rather than answer the adviser countered with two questions: “When was your friend told to pay National Insurance because the law has changed and what was he doing to earn the rents because it matters in determining his...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
