Rental income - please help

mumtoE

another question - do I need to do the tax calculation if have a rental income loss in both years? Can I just ask HMRC to do a recalculation for what I am owed on Paye rather than having to do that calculation myself?

Hoddie_2

Cook_County wrote:

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...)

You have a responsibility to report any untaxed (or under-taxed) income by 31 January following the end of the tax year. This deadline is not extended just because HMRC have not requested a tax return (how would they know to issue one?).

The extended deadline only applies if HMRC were to issue a return later than usual (for instance if you attempt to claim expenses that is beyond the scope of Business by Telephone), or if they failed to issue a tax return despite knowing one was required (ie John Smith is a company director, HMRC are aware but don't request a tax return).

Failure to notify? I'm not sure, I suspect by letter.

h4nym

Blimey - lots of questions! Try editing an existing post rather than starting a new one for each!

Anyway- Rental Income is NOT supplementary employment! The supplementary employment thing is to avoid two different employers thinking that they're your only employer and each of them then deducts the tax-free allowance from your taxable income.

Notification is independent of tax liability - so yes, you could still potentially be liabile to a penalty for not notifying them even though there's no liability arising.

If there's a loss on the rental income, you can carry it forward and offset it only against future rental profits. I'm pretty sure that's the case - it's all about which income schedules are offsettable (is that a word?!) against which others...

At best, it sounds like you're due a rebate, at worst you've got a credit on future profits... but you'll probably need to get some professional advice on this.

H

Ivrytwr3

I appreciate money is tight, but it may be prudent to visit an accountant and get them to sort this for you (their VAT on fees are deductable too!)

mumtoE

A big thank you to everyone...........all done now and calculated NO tax due and due refund on PAYE due to professional subscriptions/uniform.

What was all the stress about?

firesidemaid

hi there

i always had to fill out both the employment and land + property sections.

even since i sold the property i was renting out, i have no choice but to fill out the employment forms now.

so IMHO i would think that you would have to. but just copy the amounts off your p60s.

there is a section in the employment bit so you can fill in professional fees, union subs etc

Hippo

mumtoE wrote:

I did inform my lender - payed £100 for honour......

And because that £100 was paid in direct relation to the letting then it can be offset against tax as it's an expense:D

mumtoE

Hadn't thought of that...thank you
...and the union fees.................need to make a few changes!

Hoddie_2

and the union fees

You cannot claim relief for union membership fees, aside from those paid towards a death benefit. Professional Subscriptions are different, but you look as though you're trying to claim both.

mumtoE

I wasn't...until I read the last post...I was going to add a note enquiring about this. Must admit it did suprise me as it wasn't something that I had heard colleagues claiming for. Just one change then...re. adding the £100 for informing my lender as an expense.