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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4978
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Ive just taken on a client who has a Ladies Hair salon. Part

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I've just taken on a client who has a Ladies Hair salon. Part of his income is from renting out a room to a nail technician. The previous accountant has treated this as "Other income" and Class 4 NI has been paid on it.

Can I treat it as Rent and therefore no Class 4 will be payable? If so would going back to previous years cause a problem with the Inland Revenue



Hello, if you have any questions or need further clarification after reading my answer please let me know.


Thank you for your question...


Box 15 of self employment pages (full) covers any other business income not included in Box 14 as turnover.


It includes rental income from letting part of your business accommodation that has

become temporarily surplus.


I would not show it as rental income on property income pages - SA105 unless you can convince HMRC that it is rental income in the true sense and not connected to your business income.


More information on this can be found on SA103f-notes here


If you need more information please let me know before you rate my service.


I hope this is helpful and answers your question. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.


I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. and other UK Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thanks -

George, thank you for accepting my answer.
You reward of bonus is greatly appreciated.

all the best.