Advice needed

moneytalks

Hi

My partner and I have 3 investment properties which we are considering letting out.My partner is in fulltime employment and pays tax through paye.I also pay tax through paye.
When the properties are let out and it comes time to pay tax on the income,do we need to do a self assessment return (neither of us are self employed)or is there a form for giving details of rental income.
I would be glad of assistance on what to complete

Astaroth

http://www.hmrc.gov.uk/sa/guidelines.htm#rental

Above should help

silvercar

your running a businesss, so will need an extra form to fill in on your tax return.

moneytalks

silvercar wrote:

your running a businesss, so will need an extra form to fill in on your tax return.

Sorry to be so thick,but can you let me know the form number

Petmidget

You need to do a Income Tax return for each of you.

In this case I imagine it would be full return + employed + land and property.
You cannot just fill in the information IR has not got easy access to, you got to do everything.

These can be downloaded or requested from IR.

It maybe fairly simple (or NOT) but for around a few hundred pounds a year getting an accountant to do it could be worth it. Or have one do it year 1, ask for calculations and then copy method going forward.

Your might also wish to consider boning up on lettings relief and ways to manipulate your provate residence relief for CGT. Though that depends how long you plan on holding properties.

Cook_County

There is a whole bunch more to do:
1. Notification of liability to HMRC.
2. Deciding whether to increase mortgage or transfer home mortgage to rental properties.
3. Getting advice on insurance, rental contracts and obligations etc.
4. Making sure you let them furnished so you only pay tax on 90% of the rent.
I'd take advice from a specialist in this area.