C&G fixed rate ending but only offer SVMR

MarkyMarkD

SouthCoast wrote: »

This is my understanding:




From guide SE1

http://www.hmrc.gov.uk/selfemployed/fagir57.shtml

AFAIK rental income is different to normal self-employed income. I agree that you should notify them if you start a real self-employed business. But rental income is a different category of income from self-employed income, and if your net of expenses rental income is negative, you don't have any taxable rental income and therefore don't have a new source of income to disclose.

There is no harm in disclosing it obviously. But I don't believe you have to.

None of this applies to the OP's case, as he was probably making money from the get-go.

garyd

MarkyMarkD wrote: »

AFAIK rental income is different to normal self-employed income. I agree that you should notify them if you start a real self-employed business. But rental income is a different category of income from self-employed income, and if your net of expenses rental income is negative, you don't have any taxable rental income and therefore don't have a new source of income to disclose.

There is no harm in disclosing it obviously. But I don't believe you have to.

None of this applies to the OP's case, as he was probably making money from the get-go.

Not that I imagine it makes any real difference to the situation currently but I assure you I was making a loss from the 'get-go' and for a while after, supplementing the rent with my salary to pay the mortgage.
And I am NOT self-employed.

I appreciate it don't make things right but I just wanted to say.

garyd

Thrugelmir wrote: »

In their defence they didn't break the rules.

Ah, levity.

MarkyMarkD

OK, gary. So you didn't have to tell HMRC at the outset (IMHO), simply from the point you started making money as interest rates fell.

SouthCoast

And I am NOT self-employed.

As far as HMR&C are concerned you can be both employed (PAYE) and self-employed in respect of your part-time business.

garyd

MarkyMarkD wrote: »

OK, gary. So you didn't have to tell HMRC at the outset (IMHO), simply from the point you started making money as interest rates fell.

Thanks, MarkyMarkD,

But out of curiosity, and I know this may sound naive at best, if I was losing money before would it not seem reasonable that any money I didn't have to pay against the mortgage due to the fall on interest rate was recompense for that previous loss? In other words, NOT making a profit.
My intention was never to make money, just to limit my losses.

I have now put my cards on the table with the kids and better half and they are very supportive. Thanks all for that advice:T.
We are discussing how best to move forward and it may well be to return to the flat and sweat it out. The elder kids have said they can make other arrangements if needs be which is shaming as a parent but heartwarming to know they are willing to do that.

Also, it will be upsetting to ask the young couple in the flat to vacate as they are really nice and have never been a problem.

It all seems so unfair but I'm sure someone can point out someone else worse off.

Sorry to appear ungrateful.

All the best,

Gary.

MarkyMarkD

Yes, Gary, you are spot on. You can carry forward the losses you made, and then set off the profits you are now making against them until you have made an overall profit.

Good luck for the future.

garyd

MarkyMarkD wrote: »

Yes, Gary, you are spot on. You can carry forward the losses you made, and then set off the profits you are now making against them until you have made an overall profit.

Good luck for the future.

So there is some use of common sense in tax terms! :j

Thank you.