Rentle income tax returns???

ali137

Hi, please could you help bit confused.

rentle income to HMRC.

The tax year is 6th April 2011 to 5th april 2012

My mortatgage interest payment were 25 May 2011, 25th June 2011, 25 July 2011, 25 August 2011, 25 Sept 2011, 25 Oct 2011, 25 Nov 2011, 25 Dec 2011

25 Jan 2012, 25 Feb 2012, 25 March 2012 , 25 April 2012

Do i add the last payment date 25 April 2012 to that tax year or do i leave at 11 months interst payment on the tax returns calculation???

ali137

I went on which? website and it says:

Paying your tax
You have to pay tax on the profits you make in each tax year – the current tax year runs from 6 April 2010 to 5 April 2011.

You must declare rental income for the tax year it’s due, even if you’re not paid until the tax year is over. In terms of expenses, you can deduct any allowable expenses which relate to work done for a particular tax year – it doesn’t matter whether you pay the bill before or after the end of the tax year.

What is this talking about??????

00ec25

why read which website ? get your information direct from HMRC not someone else!
http://www.hmrc.gov.uk/manuals/pimmanual/PIM1101.htm
if your total rental (note correct spelling) is <£15,000 per year you can declare the income and expenes on the "cash" basis ie the date they are physically received or paid

if you prefer (or it is >£15,000pa) you can do it the "normal" way which follows the normal accounting principle of accruals - you apportion the income or expenditure across the rental period to which it relates , if this straddles a tax year end you split it accordingly

somethingcorporate

Did you not have an interest payment on the 25th April in the first year? or did the mortgage only start in May?

I'd leave the last one to the following year but for the sake of one payment I don't think HMRC will really care, as long as you only put it in once.

ali137

house exchange was done on 28th april, first mortatge payment was 25 May

ali137

I have been researching the HMRC website for the past 2 day regarding rentle income from house lettings.

But i can understand if i should add the 25 April payment to the tax year calculations

ceeforcat

For the sake of simplicity - ring your mortgage provider and request a 'certificate of interest' for the tax year 2011/12. Be specific.

It is as simple as that.