I am a Landlord-

How much NI will I have to pay?

When you think of running a business it is very important that you know what costs may be involved so you have a fair idea of how much profits you will make.

If you rent a property as a business, you must pay a certain amount to HMRC in the form of income tax and National Insurance. Renting a property is considered a business if all the following applies:

● You buy property for the purpose of renting out.
● Renting out properties is your main business and
● You rent out more than one property.

If the above applies to you it means you must pay NI. If you are an accidental landlord that means you do not have to pay NI even if you advertise for renting out the property or get the repairs done.

If you are running a business, you will be either running a business as a sole trader or you will be running as a limited company.

IF YOU RUN A BUSINESS AS A SOLE TRADER:

If you run a business as a sole trader, you will be paying NI with your self-assessment tax return if your profits for the year are £ 6475 or more. The type of NI you will pay is Class 2 NI. The tax rate for 2020/2021 is £ 3.05 per week. Most people pay their NI contributions through self-assessment.

You are usually required to register yourself for self-assessment when you are earning more than £1000 per year. However, you can register voluntarily even if your profits are less and pay NI voluntarily just to make sure that you get full state pension – which requires a contribution of 35 years.

You must note that the NI is paid when you reach a certain threshold for profits and not for the rent itself.

To come to a profit figure, you have to deduct all the 'allowable expenses' from the rent that is paid to you. The allowable expenses will include all the costs involved in repairing, replacing and maintenance of the property. This will include repairing of water leaks, replacing of fixtures and fittings, repainting of walls. If you have hired some equipment to carry out the repair work, then you can deduct its cost from the rental income as well which will in turn reduce your taxable profit.

If renting your property is your main business, you are most likely to have your unused personal allowance. For the year 2020/ 2021 the personal allowance is £12 500.

Once you have calculated your rental profit by subtracting your allowable expenses from the rental income, you must subtract personal allowance from the rental profit. The remaining figure is your taxable profit.

RUNNING A BUSINESS AS A LIMITED COMPANY

If you are running a business as a limited company, and you are working as an employee you will be paying Class 1 NI through your PAYE system- Employees NI. We will cover that in detail in our next blog.

We at Taxaccolega have an expert team of property accountants if you are looking for accountants in Croydon or accountants in South hall you should contact us at 020 8127 0728 and our expert team of accountants will be happy to help you.

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ID Verification Form For Companies House

From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House.

Companies House will issue a personal code to PSCs.
Taxaccolega (ACSP) can help collect data and assist.
Please answer the questions and upload documents.

Personal Details

Fornames * Last Name * Date of Birth * Nationality * Place of Birth *

Contact Details

Current Address * Date you moved in at current address? * Previous Address(es) in last 12 months (if Any) Email * Phone *

Role in the Company *

I am a Director I am a Person with Significant Control (PSC)

Identity Documents

ID Document * Address Document *
Are you an Overseas Director and PSC? *

Additional (Overseas)

Overseas Supporting Docs *

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You are declaring that all documents and information provided by you are true and correct, you are consenting to use and store your personal data and consenting for Taxaccolega Chartered Accountants to act as Authorised Corporate Service Provider (ACSP) on your behalf.

I confirm that I have read and agree to the above Terms & Conditions and consent to the processing of my data by Taxaccolega Chartered Accountants for the purposes of identity verification with Companies House.

Terms & Conditions – Identity Verification Process

By submitting, you authorise Taxaccolega to process your data for ID verification with Companies House.

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1. Purpose of this Agreement
1.1 These Terms & Conditions apply to the collection and processing of personal data and identity documents required under the Economic Crime and Corporate Transparency Act 2023 and Companies House identity verification rules effective from 18 November 2025.
1.2 By submitting your details through our online form, you authorise Taxaccolega Chartered Accountants (as an Authorised Corporate Service Provider – ACSP) to process your information for the sole purpose of fulfilling the identity verification obligations set by Companies House.

2. Client Responsibilities
2.1 You confirm that all information and documents you provide are true, accurate, complete, and current.
2.2 You accept full responsibility for any false, misleading, or incomplete information supplied, and acknowledge that this may lead to penalties or rejection of your verification by Companies House.
2.3 You must notify us promptly of any change in your details (such as name, address, or role in the company) which may affect the verification process.

3. Our Role & Limitation
3.1 We act solely as an intermediary in submitting your information to Companies House.
3.2 We do not guarantee the acceptance, speed, or outcome of any identity verification by Companies House. The final decision rests solely with Companies House.
3.3 We shall not be liable for any loss, delay, penalty, or consequence arising from:
* (a) inaccurate or incomplete information provided by you,
* (b) delays or failures within Companies House systems,
* (c) rejection or failure of verification by Companies House, or
* (d) events outside our reasonable control.
3.4 Nothing in these Terms excludes liability for death, personal injury, fraud, or any liability which cannot be excluded under law..

4. Data Protection
4.1 We will process your personal data in accordance with the UK GDPR and the Data Protection Act 2018.
4.2 Your data will be used solely for the purpose of identity verification and related compliance requirements.
4.3 We will retain your information only as long as required by law or regulatory obligations.
4.4 We will not disclose your information to third parties other than Companies House or other parties legally entitled to it.

5. Client Consent
By ticking the consent box and submitting your details, you confirm that:
• You have read, understood, and agreed to these Terms & Conditions.
• You consent to Taxaccolega Chartered Accountants acting as your Authorised Corporate Service Provider (ACSP) for identity verification purposes.
• You consent to the processing, storage, and transfer of your personal data and documents in accordance with Section 4 above..

6. Governing Law & Jurisdiction
These Terms & Conditions are governed by and construed in accordance with the laws of England and Wales, and any disputes shall be subject to the exclusive jurisdiction of the courts of England and Wales.

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Landlord National Insurance in the UK – What You Owe