Do I have to declare rental property earnings to Inland Revenue?

Hospital2

I have been left a property which I am now renting out. My income from my job together with the rental income still leaves me under the higher tax rate bracket. Do I have to declare my rental income to the inland revenue? And do I have to fill in a self assessment tax return form?

Also, can anyone clear up for me why some tax returns are due in by 31/1/10 and some are not due till 31/3/10?

Many thanks

System

You need to advise HMRC that you are receiving income from land and property and give them an indication of the level of that income. They will then decide if you are required to file a tax return.


31st January is the last filing date for 2008/2009 tax returns for those people who fall within the self-assessment criteria - ie self-employed, higher rate taxpayers whose income exceeds £100K, people with foreign income, income from land and property, capital gains etc.....



See here - http://www.hmrc.gov.uk/sa/need-tax-return.htm#1


I'm not sure what the 31st March date is you are referring to

pramsay13

Yes, you have to declare all income, the tax brackets matter not.
You can of course neglect to tell them, but if you get caught they wouldn't be too understanding.

Mikeyorks

Hospital2 wrote: »

Also, can anyone clear up for me why some tax returns are due in by 31/1/10 and some are not due till 31/3/10?

Many thanks

The only SA Returns not due until 31.3.10 are those issued late ..... and where you have 3 months from the date of issue. Otherwise it's a date for some Corporation Tax Returns .... for limited Companies.

John_Pierpoint

Presumably your tenants are not withholding basic rate tax at 20% when they make their rental payment.
So someone has got to pay it, unless the expenses of renting out the property exceeds the rental income?

On what date should you have received the first rental payment?