Landlords face an NI bill of up to £885 per property

Lots of speculation and little fact. Labour want growth but seem to be depressing everybody by floating stupid ideas in the run-up to the budget stymying what little growth potential there is. Maybe their strategy is to depress everybody so that when the real budget arrives there will be relief that it wasnt that bad.

If they do introduce National Insurance then it could be good news for Landlords opening up various loopholes and legal challenges:

See my blog post on this https://think-we-are-stupid.blogspot.com/2025/08/rachel-planning-to-charge-national.html

This article says it would be 8%. I suspect that would not be the case. The 8% rate applies if there is employer national insurance in which case rentals would be a business and therefore eligible for £10,500 employment allowance in which case the national insurance would be zero but payments count towards your state pension. The self employed rate is 6%. Of course if it’s now a business then Section 24 has to be abolished.

More likely is some kind of levy or new tax conceived by the creative Whitehall parasites.

The real losers will be tenants. If there is tax to pay it will simply be passed onto tenants and will of course cause yet more inflation. Rents are included in the CPI metric (but mortgages are not) so will show up in government inflation statistics.

If inflation rises then the yields on these gilt bonds increases – more tax payer money flowing to China.

Rachel needs to bite the bullet and start cutting costs. That of course wont happen. The best thing would be to spring a surprise resignation forcing the government into turmoil.

Government gilt interest rates are at a 27 year high – they have increased by 4% in 1 month. With success a colossal pile of government debt that’s a big number on the interest owed on the debt ! This tax if introduced wont touch the sides of the interest increase in just the last month.

Looks like a Sovereign debt crisis is heading our way.

8%, I’m doubtful if it would start at that level, even more doubtful it would stay there for long. I can see an argument being made for it to be a figure derived from the combination of company and personal NI contributions so 15 + 8 = 23%.

I may have missed it, but would this be applied to the property or the person receiving the income? If the later, then what happens to properties held within a company?

Whatever happens the worse off will suffer the most.
Tenants will feel the pain!

Will this apply to Ltd Company rental property ownership? If so how, as we have 26 properties in our companies.

It’ll ‘start low to soften the blow’ and surly go up. The government don’t seem to be sure on anything. The Renters rights bill seems to be coming in dribs and drabs and difficult to follow!

I don’t get how they arrive at a figure of £800ish per property.

Many landlords are over state retirement age, so don’t pay NI at all.

The first £12570 per year from each job is free of NI. NI isn’t cumulative in the way income tax is. How many landlords only have one property and don’t exceed £12570 in rental profits?

How is the profit on which NI would be calculated derived? Genuine profit or the Fantasyland Section 24 version?

NI is 2% on earnings over £50270.

For example if a landlord made a profit of £100K the NI would be around £4000.
0% on the first £12570
8% on the next £37700 (or 6%?)
2% on the rest.
Most of us would need a lot more than 5 properties to make that kind of profit.

Whatever the figure is it’s bad news for tenants. Even though only some landlords would actually pay NI just about all landlords would increase rents to keep pace with market rent.

The headline should be Tenants face a rent rise of £885 pa.

Reply to the comment left by Jo Westlake at 03/09/2025 – 10:50
As always the devil will be in the detail. I bet that any new tax will be structured to cause maximum damage to the tenants.

All statements of certainty such, no NI being due because of age or incorporation misjudge the situation where are in, it would be nice to think that our problems stem from the lunatics running the asylum, I fear that the lunatics are actually just delivering global power’s intentionally mendacious programme, ‘the rules based order’ means nothing as those rules are torn up or tramelled upon at an executive whim.

Reply to the comment left by Suspicious Steve at 03/09/2025 – 09:07
IMF and then being forced to cut spending and interest rates going up. The labour party couldnt even agree to cut £5bn from the welfare budget, I think that is why RR was crying in the house of commons. She knew her time was up.