Rental Income

mealmond
mealmond Posts: 316 Forumite
in Cutting tax
Hi

I have rented out my property from May this year, first time I have been a landlord.

I am keeping records of all my expenses and income etc and have an excel sheet to calculate everything, I got it from letting regulation body so I know this is fully up to date.

The only thing I am unsure of is when to submit the income from the property to the taxman, as I said, it is only from May this year.

I know I will need to fill in a self-assessment and want it kept away from my working income, I am not self-employed in my full-time job.

I was looking at an accountancy firm to prepare everything, but I am confident the between the paperwork and excel sheet it should be straightforward, as I say, the only thing I am not sure of is when to send in a tax return for income this year.

Can anybody please advise, I know it is not due as yet but want to be ready.

Kind Regards

Martin
Been there, done that, now I want to do it cheaper!!

Comments

  • anselld
    anselld Posts: 8,279 Forumite
    Name Dropper First Post First Anniversary
    You need to register for self assessment by 5 October 2018.
    If filing on paper, file by 31 October 2018.
    If filing online, file by 31 January 2019.

    However you don't need to leave it to last minute, you can file any time from 6 April 2018.
  • mealmond
    mealmond Posts: 316 Forumite
    Hi

    Many thanks for the reply, that is nice and clear, that was the only bit I was unsure about.

    I assume the income they will look at is for the previous year, so I would use the income from May this year up until the end of this tax year.

    I am already putting money aside so I am ready.

    Thanks again.

    Martin
    Been there, done that, now I want to do it cheaper!!
  • MichelleUK
    MichelleUK Posts: 427 Forumite
    First Post First Anniversary
    mealmond wrote: »
    ....
    I know I will need to fill in a self-assessment and want it kept away from my working income, I am not self-employed in my full-time job.....

    Just to clarify, when you complete the self assessment tax return you must include all of your taxable income for the year including income from your employment. It is a return of your whole tax situation for the year, not just your rental income.
  • mealmond
    mealmond Posts: 316 Forumite
    Thanks MichelleUK, I did not know that.

    Do I put in my pre tax earnings from my job or after tax, I assume they will know I am already as UK tax payer.


    Martin
    Been there, done that, now I want to do it cheaper!!
  • tacpot12
    tacpot12 Posts: 7,959 Forumite
    First Anniversary Name Dropper First Post
    My recollection is that you enter both, in the appropriate boxes on the tax return, using the figures from your P60.

    I'm also a landlord, and submit Self-Assessment tax returns for my employment, and for my rental income; it's quite straightforward and you really don't need an accountant to do it for you.

    Well done for keeping back some of the income to pay the tax when it is due. Just be aware that HMRC might, depending on the amount of tax due from the rental income, want you to make a payment "on account". This is a payment in advance towards the next years tax bill. Have a look at this link for further information -> https://www.gov.uk/understand-self-assessment-bill/payments-on-account


    So, you might want to keep back more than you are doing so at the moment.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    Also make sure you research and understand the different tax treatment of "repairs" as opposed to "improvements" of the property, and also the recent changes in tax laws as regards tax relief on initial purchase as opposed to renewals of equipment, fixtures & fittings. There've been lots of changes over the past few years - things that used to be allowable expenses aren't anymore and vice versa!
  • mealmond
    mealmond Posts: 316 Forumite
    Thanks tacpot12, I will keep an eye on it but the income from the flat is only low.

    I have seen the online firms that prepare the tax forms for you and although tempting I think I should be able to manage it and it saves me some money.

    Martin
    Been there, done that, now I want to do it cheaper!!
  • dori2o
    dori2o Posts: 8,150 Forumite
    First Anniversary First Post
    You dont always have to complete a tax return for property income.

    It all depends on the annual gross rents and annual net profit.

    You are only required to complete a tax return if:

    The annual gross rent is more than £10,000
    The annual net profit is more than £2500

    As you will not have rented the property out for a full year in this tax year you will need to average out the figures, so if you rented out the property for 11 months divide the rents received by 11 and x by 12, then do the same for the net profit.

    If your gross rental income and profit is less than the figures above and you prefer to not complete a tax return, you will be able to notify HMRC of your rental income and expenses by letter, phone, or even via the online Personal Tax Account.

    You would tell them after 5 April 2018 and tax payable would either be collected via a restriction to your tax code in 2019/20, or payable under Simple Assessment rules by 31/01/2019 if it cannot be collected via your tax code.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards