Which Landlords are classed as self-employed for Coronavirus help?

by Readers Question

9:29 AM, 27th March 2020
About 2 months ago

Which Landlords are classed as self-employed for Coronavirus help?

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Which Landlords are classed as self-employed for Coronavirus help?

Following Chancellor Rishi Sunak’s announcements about the self employed able to access a taxable grant worth 80% of their average profits over 3 years tax returns –

Properties are emptying as tenants/guests are leaving due to the COVID 19 outbreak.

What landlords can be classed as self employed? Some landlords perform a trade and pay certain NIC contributions.

What would be the criteria to be treated as self employed so our landlord members can be more informed and possibly apply?

Thank you

Kevin



Comments

Kulasmiley

13:23 PM, 27th March 2020
About 2 months ago

Let’s all canvass NLA/RLA to be classed as self employed under the Covid 19 emergency.

What if we do Airbnb holiday accommodation?

What if we spend all of our time doing maintenance paperwork etc on ours and other’s properties, aren’t we a TRADE, then classed as self employed?

Rob Crawford

14:59 PM, 27th March 2020
About 2 months ago

Reply to the comment left by Clint at 27/03/2020 - 13:06
Do you want to pay council tax business rates? I don't think so! Be careful what you wish for!

Rob Thomas

15:11 PM, 27th March 2020
About 2 months ago

Some people are talking as if this was Christmas and the government is handing out presents and it's so unfair landlords haven't received any. The truth is we are generally amongst the luckier sectors because few landlords will have just seen their income fall to zero. People still need a roof over their head.

Yes, it's going to be difficult to re-let empty properties for a time but the government support measures we have seen will help our tenants keep paying their rent. Be grateful for that.

Rob Crawford

16:23 PM, 27th March 2020
About 2 months ago

The Government has made some significant efforts to ensure rent does not go into arears. There are not many tenants that can't take advantage of them should they become unemployed. As such if rent is not being paid the circumstances of the tenant needs to be investigated. Obviously if you property is in a void and untenanted you will loose rent income. This is one reason why a mortgage holiday should be considered. Not ideal but considering the circumstances landlords are not in the worse position.

Rob Thomas

17:20 PM, 27th March 2020
About 2 months ago

Reply to the comment left by paul kaye at 27/03/2020 - 11:41
If you are incorporated (i.e. the properties are owned by a limited company) you are not self-employed. If you pay yourself a salary from the limited company as a director I don't think you count as an employee and therefore can't qualify for the coronavirus Job Retention Scheme. This is fair enough - after all you are not going to be furloughing yourself are you?

suzy149

18:50 PM, 27th March 2020
About 2 months ago

Reply to the comment left by neilt at 27/03/2020 - 11:31
only landlords with limited companies are able to get help. Sole trader and LLP landlords are not classed as self employed according to my accountant today. That leaves us up the creek without a paddle when tenants don't pay and we have mortgages to pay. No government help for landlords unfortunetly

Rob Thomas

21:35 PM, 27th March 2020
About 2 months ago

Reply to the comment left by suzy149 at 27/03/2020 - 18:50
Sounds like you haven't heard about the buy-to-let mortgage payment holiday or deferral? Also, tenants cannot be evicted for now but the government is not proposing to wipe out any rent owed so tenants will have to make it up later.

Freda Blogs

8:50 AM, 28th March 2020
About 2 months ago

Reply to the comment left by suzy149 at 27/03/2020 - 18:50Not sure that’s correct....
Directors of limited companies who take the majority of their income through dividends are not covered by the provisions for self-employed and employed individuals.
This is such an irony and a double blow, as so many landlords incorporated because of the draconian tax measures (S24) introduced by the government.
There is a petition to bring this to government attention:
https://www.change.org/p/uk-parliament-limited-companies-to-receive-the-same-as-self-employed-and-employees-during-coronavirus?recruiter=79135679&utm_source=share_petition&utm_medium=facebook&utm_campaign=psf_combo_share_initial&utm_term=psf_combo_share_message&recruited_by_id=505c9495-3107-4722-beea-b275058df674&utm_content=fht-21137721-en-gb%3Av12

Persuader

10:12 AM, 28th March 2020
About 2 months ago

Reply to the comment left by Rob Thomas at 27/03/2020 - 17:20
My understanding is that if you are on Payroll you are treated as an employee even if you are director/shareholder.

Dennis Leverett

10:38 AM, 28th March 2020
About 2 months ago

Reply to the comment left by Rob Thomas at 27/03/2020 - 17:20
I think I'm right in saying that if you are on PAYE in your own Ltd Co. you can claim within the criteria. May be wrong.

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