One off let - tax?

Lancashire_Lady_2

Hi

I am fairly recently self employed so very new to the whole concept of tax returns etc.

We have the opportunity to rent our house out for 10 days next year for a large local event but I am worried that a big portion of the profit would be lost if I have to declare this income on a tax return?

6 months ago neither myself or my husband did a tax return so would we have been expected to do one anyway re this additional income?

I want to stay above the law but on the other hand want to make sure we maximise any profit!!!

Any advice would be greatly appreciated. I have looked at some info but it all seems to refer to 'holiday lets' and I can't find anything specific about a one off let.

Thanks

BitterAndTwisted

Yes, as a self-employed person you will have to do a tax-return anyway and you will need to declare all of the rental-income on it. It might be possible for the person who earns the least during that year to declare it, so that it doesn't fall into the 40% tax-bracket.

Werdnal

Have you looked into the other apsects and costs of letting?

Would your mortgage allow it? Would your insurance allow it?

Do you intend to get a gas safety certificate if you have gas supply?

How are you going to ensure the "tenants" actually vacate when you want them to leave?

How are you going to cover the risk of any loss or damage to your property?

I hope you have done all your homework, otherwise loss of a little income to the tax man may be the least of your worries!!!!

ALL income must be declared. HMRC will decide whether you need to pay them anything.

puddy

yes, 6 months ago before you were 'self employed' you would still have needed to declare the incom
the clue is in the name, 'income tax'

Lancashire_Lady_2

Thanks Werdnal but yes that is all checked. We have to get PAT testing and a gas cert as well as covering the insurance, although the agency will also offer insurance in addition to household insurance.

It is the Open Golf and although there are lots of people renting to visitors the agency we have been assessed by are the official agents who are sorting accommodation for the players, R&A officials and TV companies. The people that we bought the house from last year did it for the previous tournaments that were here and I know a lot of people locally who have done it before - but no one has ever mentioned the tax!