Rental income - making a loss but still need to contact HMRC?

M22saver

Hi there,

I moved out of my flat at the beginning of March this year and have been renting out via a letting agent.

The monthly outgoings (interest-free mortgage, agency fee and service charge) come to more than the income that I get from the property, so I'm making a slight loss.

Looking on the HMRC website, it suggests that I don't need to complete a tax return (that looks like it's for people earning £10k or more through another income) but it says I must still contact them and let them know about my circumstances.

Do you know why they do this and what, if any, effect it would have on the tax I pay? I'm hoping it won't have any as I'm not making any profit at all!

Many thanks

BoGoF

What's the monthly gross income?

Did you mean to say 'interest free' mortgage.....or perhaps interest only?

antonic

Its a source of income so HMRC need to be notified, BUT you can claim back any reasonable expenses.

I cant post links (yet !) but google hmrc rental income and you will get your answers from the directgov website - hope this helps !

M22saver wrote: »

Hi there,

I moved out of my flat at the beginning of March this year and have been renting out via a letting agent.

The monthly outgoings (interest-free mortgage, agency fee and service charge) come to more than the income that I get from the property, so I'm making a slight loss.

Looking on the HMRC website, it suggests that I don't need to complete a tax return (that looks like it's for people earning £10k or more through another income) but it says I must still contact them and let them know about my circumstances.

Do you know why they do this and what, if any, effect it would have on the tax I pay? I'm hoping it won't have any as I'm not making any profit at all!

Many thanks

M22saver

Thanks for the replies.

Gross monthly income (the money I get in my account each month) is £462.

McCues1234

Hi,
Just an update on my situation..... i was the same as yourself, only i'd been letting out my property for 3years in a loss situation. I have all the paperwork/documention etc required but didn't inform them because i thought i didn't have too. I received a letter from them on Monday to say that they have information to say that i'm letting out my property and cld i please answer some qus such as property address/income/expenditure/amount of mortgage etc.. i have replied but also rang them and advised them that i didn't declare it as it was a loss making situation. I asked the employee should i have advised them if in a loss, his response was 'not really, it doesn't matter unless you are making a profit as otherwise there is no tax to pay'!!!! I'm guessing i will get a fine though for non filing! I would say to contact them to keep yourself right Most important, have all the paperwork for 6years!

chrismac1

There's always the chance you'll make a profit on the property some day. You'll then be very glad of the losses brought forward from earlier years as this will mean no tax to pay until those losses are used up.