Is client self employed with only rental income?

Client only has rental income. Are they classed as self employed?

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I have a client who ceased work to look after her husband, who has dementia.  Her only income is now 50% share of rental income from a single property, is this classed as self employment by HMRC, I have looked on the HMRC website - very confusing?  The reason I am asking is because she has to complete a form to get Carer's Allowance, and the DWP form says "By self employment we mean ... receiving income from property or land you own ..." and asks Are you self employed now, about Trading Year and copies of Trading Accounts.  Thanking you in advance for advice.

 

Replies (7)

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By SXGuy
15th May 2024 13:14

I have to say, that what the DWP consider self employed income isn't always the same as what hmrc consider self employed income.

If you want to know whether rental income is considered self employed income for the DWP then the answer is yes.

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Replying to SXGuy:
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By Novice Accountant
15th May 2024 13:38

Thank you. So much for joined-up government. I assumed it was DWP making their own rules, which do not math with HMRC. Confusing for general public.

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Replying to Novice Accountant:
DougScott
By Dougscott
15th May 2024 14:38

DWP guidance is often written in simplistic terms for the benefit of claimants. The way someones income is calculated for benefit claims is often quite different and it is little to do with "joined-up-thinking". HMRC are determining what your taxable income is and the tax you need to pay. The DWP are determining what your actual income is and how much help you need.

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Replying to Dougscott:
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By Novice Accountant
15th May 2024 16:42

I take the point, but the DWP form is not simplistic. Someone who has rental income is not self-employed, so confusion if they are also having to complete a tax return.
That is the way of the world these days. Civil servants creating forms with no real knowledge of the real world.

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Replying to Novice Accountant:
DougScott
By Dougscott
15th May 2024 16:45

Who is employing them then?

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Replying to Dougscott:
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By Novice Accountant
16th May 2024 15:02

Not clear about your reply. The client is no longer working and has no employmernt, due to caring for husband. Sorry if I have missed your point.

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By David Ex
15th May 2024 16:02

I’ve a recollection this was discussed a while ago. I looked into it a couple of years ago and concluded it wasn’t regarded as self-employment. I’ll see if I can find how I came to that conclusion.

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