Rental income - please help

MarkyMarkD

You should be able to ask your lender to change the correspondence address for your mortgage, but as you say it's daft of them not to have done this automatically when you applied for permission to let.

mumtoE

All geared up to fill out forms but no supplementary forms included...and printer not working so can't get online (I have telephoned...but worried they will take ages to send them)!! I see one of the questions asks about maternity and sickness leave. I was on mat leave and 3 months sickness prior to this for this tax return year...how will that affect me??

Hoddie_2

You'll be unlikely to get the forms before next Wednesday, if possible pick some up from a local HMRC office (you might only be able to get 05/06 forms at the office, but at least this will prevent a £100 fine).

If you received either or both Statutory Maternity Pay and Statutory Sick Pay, these would need to be recorded at 11.7. The figures should be on your P60. If you received Maternity Allowance do not record this as it is not taxable.

mumtoE

Have also posed this q in a new thread in an attempt to see if someone can help me out tonight.!!

Q1) re. 10% wear and tear allowance on land and property form (arrived in post today!!).
My total income is a sum of what I received from agency minus their fees and any repairs they have done (thought was easier to do this way as that is how is laid out on my statements from agency) so in any one month may be anything up to a max of £485(rental income minus agency fees). Rent is actually £550 pcm. So for the 10% allowance do I claim 10% of total income (includes repairs done by agency but not big repairs paid direct by me and agency fees) or 10% of rent (£55 pcm).

Q2) Do I need to fill out an employment supplementary form (employed by NHS) as although I requested this it wasn't sent to me with the Land and property ones.

Thanks so much!!!!!

Cook_County

If the forms were only issued on 22/1 what's the rush since they're not due yet?

h4nym

Hiya MumtoE

1. The 10% wear & tear is on the gross rent - how you choose to market your property isn't a matter for the wear & tear!

2. Rental income isn't supplementary employment.

Your employers will deduct your tax based on PAYE - ie your tax-free allowance will be taken into account by them. Any profits on your rental will be added to your earnings from employment. That will allow you to calculate the total tax due based on your total earnings, from which you deduct the amount already paid under PAYE and hand a cheque over for the balance.

As usual, get advice from a qualified accountant to confirm an' all that!

Hope this helps

H

Hoddie_2

Cook_County wrote:

If the forms were only issued on 22/1 what's the rush since they're not due yet?

If HMRC have judged this to be a 'failure to notify' then the original deadlines apply.

Cook_County

Don't want to seem dense, but if I phone them up & ask for a form;

1. It always used to be due 30 days after issue, what has changed?
2. How would she know if this was already deemed failure to notify?

(I suspect there is a loss so all of this will be moot in any case...)

mumtoE

Thanks re. the 10% q that is what I suspected

There is a loss on both years so it looks like there will be no tax due and a loss to carry forward (so why didn't I do this 2 years ago????????), but I still have to fill in the paperwork. so are you saying I dont have to fill out the employment forms.....the guidance notes say all in employment should fill out. Its complicated by the fact that I am owed money on PAYE for professional subscriptions and uniform (wear uniform with logo and no laundry facilities).

mumtoE

Will I have to pay a penalty for failure to notify even though there is a loss?