NI contributions - is my wife self employed?

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    NI contributions - is my wife self employed?

    My wife and myself own 21 BTL properties.

    We both work full time (employed), and we both receive a P60 each year from our employers

    We are both registered as property investors with HMRC.

    Every year we each submit an online self assessment for our employed earnings, and we also each submit an online 'land & property' tax return for our btl earnings.

    Our local NI office have sent a form to my wife entitled 'Property letting form' which asks for details of her level of involvement with the day to day running of our btl business.

    Apart from monthly book keeping my wife has no involvement with the btl business.

    Is my wife liable for NI contributions and is she 'self employed'?

    As i understand it, long term property investing is regarded by HMRC as a trade and therefore NI contributions are not payable.

    We do not do any property developing, we do not buy and sell quickly, we simply buy and hold property for the long term.

    Can any one please clarify the position for me.

    Thank you

    John

    #2
    HMRC have always argued that property investing is NOT a trade mainly to limit reliefs like pensions etc. So, if no earnings, no NI is due.

    But if there are significant amount of services involved, then there is an argument that this might amount to a trade. HMRC have recently lost a case over incorporation relief ( not aware if it's going to Appeal or not).

    Your portfolio of 21 rental properties might well amount to a trade. I am surprised it's not run through a company, but I am sure there may be good reasons why it's not.

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