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Didn't declare tax on rental income

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Comments

  • moneysavinghopeful_2
    moneysavinghopeful_2 Posts: 8 Forumite
    Yes I am a proper landlord - I'm not flakey and I've done all the right things with deposits, safety certificates, insurance, my lender etc. and my tenants say I'm the best they ever had. I'm completely kosher I just didn't know about this one thing.

    When I said I wasn't a proper landlord, I meant I wasn't in it for the money but through circumstances, so everyone can calm down now!
  • mlz1413
    mlz1413 Posts: 2,894 Forumite
    Combo Breaker First Post First Anniversary
    edited 26 January 2010 at 1:22PM
    kungfumaster wrote: »
    .. they say that I should have all receipts for the last 6 years, whereas I have hardly kept any of my receipts :(. .QUOTE]

    Do you have a seperate bank account for the rental income & out goings? Can you prove any payments - ie cheque payments for repairs. Do you always use the same person to service the boiler - could they give you copy invoices?

    The IR have offices you can turn up at and talk to someone, but they will probably be busy at this time of year - 31st Jan is deadline for self assessment tax returns.

    Just noticed the dates... 2007 thread resurrected in 2010!
  • ManicMum
    ManicMum Posts: 845 Forumite
    moneysavinghopeful wrote: »
    Thanks guys thats really helpful. I actually just gave them a ring and they said if the profit I make once I deduct interest payments and service charges etc. from the rent doesn't exceed £2500 then I just have to write to them with a few details - no forms to be complete!

    Can I just confirm this with anyone else? My husband and I have to do a tax return every year. We have never made over 2500 when all the interest, expenses etc taken off so why are we doing tax returns? My hubby is employed and although self employed last couple of years, I wasn't working before that. We don't have any other investments or anything.

    cheeers
  • RobertoMoir
    RobertoMoir Posts: 3,458 Forumite
    First Anniversary Combo Breaker
    Matt1069 wrote: »
    Is there an amount I'm allowed to make before i have to start paying tax, as a brand new LL (exchanged contracts with my new tenants last week) myself thats employed, I'll admit I'm not making that much profit at all per month, its pure long term investment for me, just wondered if theres an allowance per year, after maintenance that'll no doubt start soon, i prob won't be making anything, i assume I'll still have to prove/declare it but was just wondering about any allowance?

    Thanks

    You have to declare all income. You can offset the costs against the income to make a saving on your tax liability but you should declare all sources of income to the taxman.
    If you don't stand for something, you'll fall for anything
  • Trollfever
    Trollfever Posts: 2,051 Forumite
    Question #4 on my just completed online Self Assessment tax return reads:

    UK Property - Did you receive any income from UK property (including rents and other income from land you own or lease out)?



    .
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    First Anniversary Combo Breaker
    ManicMum wrote: »
    I've got 2 mates who don't declare and one has several properties. It makes me mad as I am honest but what can you do?
    Errrrrrr, dob 'em in?
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    IR150 Taxation of REnts... this is an excellent read explaining all the expenses oyu can claim
  • ManicMum
    ManicMum Posts: 845 Forumite
    mr_fishbulb wrote: »
    Errrrrrr, dob 'em in?

    easier said than done. Part of me wants to but not sure I could not look guilty when they tell me someone has dobbed them in. Sure it will catch up with them eventually.
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    First Anniversary Combo Breaker
    ManicMum wrote: »
    easier said than done. Part of me wants to but not sure I could not look guilty when they tell me someone has dobbed them in. Sure it will catch up with them eventually.
    You're too nice :)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    ManicMum wrote: »
    easier said than done. Part of me wants to but not sure I could not look guilty when they tell me someone has dobbed them in. Sure it will catch up with them eventually.

    The penalties for tax evasion mount up.

    Fines for incorrectly / unfiled self assessment forms.

    The actual tax due.

    Penalties of up to 30% of the tax due.

    Then interest on the amount owing from the date it was originally due.

    Once the tax debt is over 6 years old the HMRC can assess the income, there is no right of appeal.


    May reduce the profit on the venture somewhat!
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