Rental income and Tax

jim_rogan

G_M wrote: »

To comply with the legal requirement to complete a tax return?

Reporting your profits to HM Revenue & Customs


If your profit is less than £2,500

If you're employed, or getting a pension through PAYE, and your taxable income from property is less than £2,500, your Pay As You Earn (PAYE) tax code can be adjusted to collect the tax on your property income each year. Just ask HM Revenue & Customs (HMRC) to send you form P810 to report your income each year.
.........
Paperwork that you need to keep

You'll have to keep records of your property letting business for six years after the tax year they're for. You need them to back up the figures you put on your tax return. Your records should include details of:

• all the rent you receive and the dates when you let out the property
• any income from services provided to tenants
• your business expenses
• rent books, receipts, invoices and bank statements

Still confused.. I'm a basically UK resident, unemployed, rental income will be less than 2,500p. It's not easy .. T.T.. anyway, Thank you so much!

tbs624

Talk to HMRC direct, It's classed as "unearned income" and has to be accounted for.

On non-tax issues , note that you *have* to provide your T with an address in Eng/Wales at which Notices relating to the tenancy may be served (S48 LL & T Act 1987)- rent payments don't have to be made until you do so.

It's also worth you being aware that even if you agree to a three month let, should your T refuse to go after three months, you will not be able to seek a court order for repossession until after *6* months have elapsed.

Have you sought Lender's Consent to Let, if your property is currently mortgaged , and changed your house insurance policy ? Given T a copy of an EPC and arranged for gas check/cert to be undertaken? Someone lined up for any repairs that may become necessary - LLs have statutory repairing obligations when letting property out.

jim_rogan

tbs624 wrote: »

Talk to HMRC direct, It's classed as "unearned income" and has to be accounted for.

On non-tax issues , note that you *have* to provide your T with an address in Eng/Wales at which Notices relating to the tenancy may be served (S48 LL & T Act 1987)- rent payments don't have to be made until you do so.

It's also worth you being aware that even if you agree to a three month let, should your T refuse to go after three months, you will not be able to seek a court order for repossession until after *6* months have elapsed.

Have you sought Lender's Consent to Let, if your property is currently mortgaged , and changed your house insurance policy ? Given T a copy of an EPC and arranged for gas check/cert to be undertaken? Someone lined up for any repairs that may become necessary - LLs have statutory repairing obligations when letting property out.

Thank you so much! There's no mortgage. My friend will back to his country after 3 months, so I think it's OK. I will contact HMRC today. Very thank you for your advice!