Rental income

Applecider_2

Hi!

I have been renting my house out since 2009 and had yet to make a profit for the first time this year I have made £2000 through the year. What's the best way forward with paying tax on the profit? Do I phone them? What will happen then? I just earn a normal wage, £25000 and pay ordinary tax, does this need to change to this PAYE?

Also I have just read that I should have told the taxman when I started, but I never made any profit?? I never made any profit as I was paying a mortgage that was interest only the rent just covered it, this counts as an offset??

I don't really understand it! Really appreciate any help

ognum

you really need to have a conversation with HMRC. You are correct you should have been completing a self certification for tax.

Self certification is mandatory whether you make a profit or not, do you have all you back information to the date you started letting?

People who contact HMRC themselves and explain their lack of knowledge and their wish to behave correctly are often treated leniently but you do need to speak to them.

motherofstudents

Yes you should have informed them straight away but I wouldn't be too concerned about that, just let them know. Also find out what you can allow against your tax liability for the expenses you occur in letting.

Applecider_2

Thanks for the advice I will phone them tomorrow and explain to them why I haven't been in touch before.

Can they fine me for not coming to them before?

Thanks again for all your advice.

Applecider_2

Also I have kept a file with bank statements, receipts, mortgage statements etc for each financial year.