ARTICLE · 21 SEPTEMBER 2015

An Update On National Insurance

Hazlewoods LLP

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The issue was picked up by the local and national press and Megan appeared in The Times discussing the issue in January.

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If you are an avid reader of Taxation (a weekly magazine for Tax Professionals) you will already be familiar with the campaign by one of our Property Team, Megan Lewis-Bourke, against HMRC levying Class 2 National Insurance (NI) demands against landlords.

HMRC were arguing that the receipt of rental income should be classed as a trade and therefore Class 2 NI should be charged, whilst Megan made the point that it is, in most cases, simply passive investment income which is not subject to NI. Where a landlord engages professionals e.g. estate agents to deal with the properties on his/her behalf they could not be deemed to be undertaking the work themselves and therefore should not pay the NI demanded.

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