National Insurance on Furnished Holiday Let income

National Insurance on Furnished Holiday Let income

Didn't find your answer?

I clearly have no problem in making myself look stupid but I've hit a mental blank on this one.

Husband & Wife have just started letting their own holiday home as a furnished holiday let so do they have to register the business with HMRC and pay Class 2 NI as if a "proper" business?

Please don't make more fun of me than is absolutely necessary!

Ta

P

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By stephenkendrew
11th Oct 2011 13:01

no and no

No - there's no NI and no - you don't look stupid.

I think the first page of the notes for page SA105 (income from property)

http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf 

distinguishes between income from property and self-employment. Furnished holiday letting is in the income from property category (on which there is no NI) rather than self-employment (on which there is, of course, NI).

 

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By ireallyshouldknowthisbut
11th Oct 2011 13:08

Good Q

I think its a good question given FHL is treated essentially as a sole trader for most of the rules its one of those you either know it or you dont. 

Its not like you have asked so, income tax and dividends, how does that work then?

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Teignmouth
By Paul Scholes
11th Oct 2011 16:24

Brill

Thanks both.

Think I'm OK with dividends and income tax, it's the VAT aspects of dividends that always throws me. 

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