Advantages of being self-employed landlord?

[pete's properties]

Has anyone become officially self-employed as a landlord rather than just taking the money and declaring it?

It seems there might be advantages for me in that I could count my hours worked as a landlord towards the 16 hours needed for me to get tax credits.

What's the process and what are the pro's 'n' cons?

ta

[Ericthelobster]

Has anyone become officially self-employed as a landlord rather than just taking the money and declaring it?Not sure what you mean - you're already effectively a self-employed landlord??? The only I issue I can think of would relate to National Insurance contributions - if you aren't working elsewhere eg in a PAYE job where you're paying NI, you'd have to pay NI yourself as a self-employed individual instead.

[pete's properties]

I like asking dumb questions because it saves dumb errors on my part!

Thanks, I see your point and I am about to register as self-employed. The real question for me then, if anyone can help, is how many hours work can I reasonably declare as "worked"? It makes a huge difference in income if I declare 16 hours, but really it's only about 8.

Has anyone been in the same position and managed to think up 8 hours of activity that vaguely counts towards the 16, without of course actually being deceptive?

My questions get dumber!

[TaxationPete]

Do you have a PAYE Job. ?
Watch out for the new rules at :
http://www.hmrc.gov.uk/briefs/tax-credits/self.htm
Peter D

[pete's properties]

Thanks Taxation Pete. I like your name!

No, I don't have a PAYE job. I have just ended a low paid (below tax threshold), part-time job. I have yet to receive any rental income. The tax people know I'm a landlord but the tax credit people don't yet...and it's that lot that may be able to help!

:)

[TaxationPete]

I'm confused Pete, you joined last june you refer to a property in May and have DSS tenants and now you say "I have yet to receive any rental income."
????????????? What have you been doing.
Who can claim
You can claim Working Tax Credit if you're aged 16 or over, and work for 16 hours or more a week (employed or self-employed) and one or more of the following apply:

"You are responsible for a child under 16 or young person aged 16 but under the age of 20 in full-time non advanced education at school or college, or who's doing approved training on a specified programme like Entry to Employment.
You have a disability that puts you at a disadvantage in getting a job.
You are aged 50 or over and are returning to work after a period on benefit.
You are aged at least 25 and work 30 or more hours a week.
Usually you have to live in the UK, but you may still qualify if you live somewhere else.

Do I qualify? - Use our online Tax Credits questionnaire to see if you are eligible for tax credits."
From
Who can claim
You can claim Working Tax Credit if you're aged 16 or over, and work for 16 hours or more a week (employed or self-employed) and one or more of the following apply:

You are responsible for a child under 16 or young person aged 16 but under the age of 20 in full-time non advanced education at school or college, or who's doing approved training on a specified programme like Entry to Employment.
You have a disability that puts you at a disadvantage in getting a job.
You are aged 50 or over and are returning to work after a period on benefit.
You are aged at least 25 and work 30 or more hours a week.
Usually you have to live in the UK, but you may still qualify if you live somewhere else.

Do I qualify? - Use our online Tax Credits questionnaire to see if you are eligible for tax credits.

Who can claim
You can claim Working Tax Credit if you're aged 16 or over, and work for 16 hours or more a week (employed or self-employed) and one or more of the following apply:

You are responsible for a child under 16 or young person aged 16 but under the age of 20 in full-time non advanced education at school or college, or who's doing approved training on a specified programme like Entry to Employment.
You have a disability that puts you at a disadvantage in getting a job.
You are aged 50 or over and are returning to work after a period on benefit.
You are aged at least 25 and work 30 or more hours a week.
Usually you have to live in the UK, but you may still qualify if you live somewhere else.

Do I qualify? - Use our online Tax Credits questionnaire to see if you are eligible for tax credits.

http://www.hmrc.gov.uk/taxcredits/wtc-keyinfo.htm

New info awaited as the rule have changed and tightened in Jan 08. I gave you that link.

What aspect of getting up at 6.30 am every day when the bell goes and showering with a 100 other naked male residents are you particularly looking forward to. ??

Regards Peter

[pete's properties]

Hi Pete, thanks for the info and the link...phew! I have now spoken to the tax credit people and completed my NI stuff.

It seems I probably qualify, although I might skip the showers and just find a small fine for late registration!

Thankfully I do have all the paperwork: everything is above board but all I can say is thank goodness for Taxation Pete. You could star in your own comic strip!

Pete :)