HMRC going after Class 2 NIC on those who simply own buy to let properties
22 August 2014 13:23
It appears from cases being cited in the tax professional press that HMRC is currently seeking Class 2 NICs from those who simply let out one or more properties.
HMRC are arguing that the rental business is a real business, making the owners of the properties self employed and thus liable to compulsory Class 2 NICs (currently £2.75 a week).
In 999 cases out of 1,000, HMRC are wrong to bring this argument. Only in the exceptional case where you as the owner of buy to let properties do a huge amount of work (probably means full time, 37.5 hour working week) to manage the properties could HMRC be able to argue that you have become self employed.
If you get a letter from HMRC pursuing this false line of attack, do contact us immediately.