8:45 AM, 10th September 2015, About 7 years ago 3
I have one property which I self manage. I am thinking of registering as a self employed landlord but I am not sure if I am eligible with just one property, or if there are any disadvantages of doing this, other than having to pay National Insurance Class 2 contributions.
My reasoning is that I think I would be able to claim back some of my part time childcare costs in the country where we live if I had an official ‘job’ for two mornings a week, rather than just managing the property in my spare time and on an ad hoc basis. The rest of the week I am a full time mum.
I usually fill in a self assessment UK tax return but I don’t actually pay any tax on the rental income because the profit comes way under my annual tax-free allowance in the UK. I am a UK tax resident because I spend a lot of time in the UK seeing family.
Would anyone be able to advise me if registering as self employed would be legal for me, and if there could be any pitfalls? The childcare costs will only be an issue for the next couple of years – would there be a drawback to having registered as self employed, after I cease to gain this financial benefit from it? Would I still get tax relief on the mortgage interest? And if I in the future employ a lettings agent to manage the property, could I still be self employed?
I’m happy to pay for professional accountancy advice if I need it, I just wasn’t sure if this is an avenue worth pursuing.
Thank you for your help.