Hi, I care for my wife and gave up work 5 years ago to look after her. I rent out 4 properties and was wandering if this would be considered by the DWP as earnings income or investment income ? Obviously if it is counted as earnings income I would not get CA. Any advice welcome.
You need to talk to the Carers UK helpline about this.
From
The DWP decision makers guide - chapter 15, paras 15743 to 15746 deal with whether rental income is considered as being a business or an investment; and para 15275 on the treatment of investments.
https://assets.publishing.service.g…loads/attachment_data/file/811525/dmgch15.pdf
The guide is not clear and muddled - says about 1 property bring an investment but then goes on to say about 2 or more people forming a business - I am not forming a business so this para is not relevant.
Thanks, will do … the advice in the DMG is muddled - says about 1 property being an investment but then goes on about 2 people coming together to buy property to form a business - I am not forming a business so this para is not relevant. All very confusing. The HMRC class renting out property as an investment income - you do not need to pay NI if you rent out even 10 properties. see Rashid v Garcia [2002] UKSC