Buisness account and rental income

janku

Hi, Is it Important to have Buisness account if you have rented out your property? I have mine with Natwest and it charges me 10 pounds every month as a handling fees. Would be be okay to receive the income in a normal personal current account so as to avoid the charges? or would this affect tax returns at the end of the year?

Mrs_pbradley936

No you can have rental income paid into your personal account because I do. If you have very simple finances you just need to fill in a tax form once a year. If your finances are more complicated pay an accountant

morag1202

My mum opened a No2 account with her bank and used it only for rent in and allowable expenses out. She did her own tax and IR had no interest in where money was held.

janku

Thanks for your answers, need one more clarification:

Do I have to fill-in the tax return form every end (every December) of the year OR is it one year from the day I rented my propery. Say for example, i rented it out in Mar 2008, so I need to fill-in the tax returns in the month of March 2009?

Mrs_pbradley936

janku wrote: »

Thanks for your answers, need one more clarification:

Do I have to fill-in the tax return form every end (every December) of the year OR is it one year from the day I rented my propery. Say for example, i rented it out in Mar 2008, so I need to fill-in the tax returns in the month of March 2009?

Well the financial year runs April to April not January to December. So you would only have a month or less in 2008 to worry about. Anyway all you need do is add the rental income to any other income take into account your personal allowance and you will have a rough idea of how much you owe. The tax people ask for their money in January and July and if you find that you cannot trust yourself to put the money to one side you can pay them so much a month via Direct Debit and at the end of the year if you have not paid enough they will bill you and if you have paid too much they will credit you.

morag1202

janku wrote: »

Thanks for your answers, need one more clarification:

Do I have to fill-in the tax return form every end (every December) of the year OR is it one year from the day I rented my propery. Say for example, i rented it out in Mar 2008, so I need to fill-in the tax returns in the month of March 2009?

You need to fill in a Tax return for the tax year 2007/08 for all your housing income and allowable expenses from March 2008 to 5th April 2008. This should have been filed by 31/01/09.

Thereafter you fill in a Tax return for the year 2008/09 (details of all income and allowable expenses in the period 6/04/08 to 5/04/09) and submit by 31/01/10

As Mrs PB said, you will also have to include details of all other income received (from employment, interest on savings etc) and all tax paid on that income. If you file before 31/10/09 then you can submit a paper copy and they work out the tax you owe - after that, you have to do it online.

I have always found my Tax Office to be very helpful and suggest you give yours a ring. I also find the website useful, especially the notes for guidance.

http://www.hmrc.gov.uk/index.htm