tax return for rental income - less than personal allowance

jase_31

We purchased a property last year without mortgage in my OH name. Funds were from estate following the sale of the parents property.

This property is now rented with an income of less than £6k. Am I correct in assuming that I need to complete a SA form for her? or is this not required as income is less than the personal allowance.

BitterAndTwisted

Assume nothing where the Revenue are concerned! Why don't you ring them up and ask them?

ILW

Does she have no other income and is the property in her name only?

Hammyman

jase_31 wrote: »

We purchased a property last year without mortgage in my OH name. Funds were from estate following the sale of the parents property.

This property is now rented with an income of less than £6k. Am I correct in assuming that I need to complete a SA form for her? or is this not required as income is less than the personal allowance.

No, SHE needs to complete a SA form even if its trading at a loss.

G_M

We purchased a property last year without mortgage in my OH name. Funds were from estate following the sale of the parents property.

This property is now rented with an income of less than £6k. Am I correct in assuming that I need to complete a SA form for her? Only if you are her accountant or is this not required as income is less than the personal allowance.The rental income needs declaring even if she has no other income and therefore does not owe tax

See details here.

TrickyDicky101

If you do not fill in a tax return and thus HMRC believes you have transgressed in some way, you cannot be fined (AFAIK - and I could be wrong) if you do not physically owe any tax (because rental income is wholly covered by your PA). This always used to be the case when it came to my tax return (but this was based on me being an employee) - for eg the £100 late completion penalty did not apply if you didn't owe any tax, irrespective of when you sent the return in.

tbs624

TrickyDicky101 wrote: »

If you do not fill in a tax return and thus HMRC believes you have transgressed in some way, you cannot be fined (AFAIK - and I could be wrong) if you do not physically owe any tax (because rental income is wholly covered by your PA). This always used to be the case when it came to my tax return (but this was based on me being an employee) - for eg the £100 late completion penalty did not apply if you didn't owe any tax, irrespective of when you sent the return in.

On self assessment if HMRC doesn't receive your tax return before the filing deadline, you *will* be charged an automatic £100 penalty, in addition to any interest on tax that would be payable. You'll only get away without that penalty in very specific circumstances, if you have what the HMRC decides is a "reasonable excuse" ie, heart attack/other life threatening illness that prevented you from making the return on time( Other examples are the loss of necessary doc through fire or flood leaving you with insufficient time to obtain copies, or the death of your partner around the filing deadline)

If you don't file on time HMRC can also estimate what they think should be due and charge you interest on that amount until you *do* file. Given that you have until 31 Jan in the year following the end of the relevant tax year most people have no excuse for not getting the return in on time.

Accountant_Kerry

agreed you will be charged, however if on submitting your tax return you don't owe any tax this charge will be removed.

poppysarah

TrickyDicky101 wrote: »

If you do not fill in a tax return and thus HMRC believes you have transgressed in some way, you cannot be fined (AFAIK - and I could be wrong) if you do not physically owe any tax (because rental income is wholly covered by your PA).

They can also estimate how much tax they think you owe and then you have to prove you don't.

Hammyman

poppysarah wrote: »

They can also estimate how much tax they think you owe and then you have to prove you don't.

And that estimate is based on THE REGIONAL AVERAGE profit for the sector. So if you're a struggling one man garage barely breaking even but every other garage in the area is making £100k profit, the bill you will be sent will be based on £100k profit.

Just a thought to ponder....

Trollfever

Don't mess with HMRC and don't upset anybody.

http://www.hmrc.gov.uk/tax-evasion/