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  • Tax

    Pension contributions for landlords

    Check net relevant earnings direct with HMRC or online

    Tax relief for pension input is designed to make workers less dependent on state when retired

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    In General BTL income is simmer to divided income from shares

    You don't normally pay NI on profits from BTL so its not self employment

    If you look at your self assessment form its Has its own section Land & Property

    though most of us think of BTL as a Business Its Not

    This is precisely how Osborne Law came about he has limited Tax Relief on Interest Payments

    But If you invest via a Company Your a Director so you can use Income to fund a pension




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    Learn Change and Adapt ?????


    BTL is a business, is not a business, may be a business all according to HMRC which uses different definitions of business in different bits of the tax law.

    HMRC's internal manual says:

    However, a person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out amounts to running a business.

    I am hoping that they will accept me as such an earner and let me pay a year's class 2 NICs.

    In the future most self-emplotyed will pay class 4 contributions on income from a trade profession or vocation. Business is not on that list unlike theold class 2 list. Anyone not otherwise paying will still be able to make class 3 contributions.

    The rules for pensions are structured very differently. Only income of certain types is counted for determining your income for how much pension contribution you make personnally make. Rents are not on that list. Third parties like a company aren't limited that way. It has nothing to do with whether BTL is a business.

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