made redundant. Got BTLs - can i use BTL profit as IT personal allowance?

Dazed_and_confused

Have to agree with nomunnofun, any tax refund for year to 05:04:2013 will only ever be sorted by submitting your self assessment return with details of all income, BTL, job etc.

Tax is worked out on all sources of (taxable) income, not one by one.

MoneySavingMission

can the office not sort directly? without self assesment? All information / documentation sent to the office last month prior to end of tax year. I am only now in a position to complete annual BTL accounts so this is why submitted seperately.

nomunnofun

MoneySavingMission wrote: »

can the office not sort directly? without self assesment? All information / documentation sent to the office last month prior to end of tax year. I am only now in a position to complete annual BTL accounts so this is why submitted seperately.

There is nothing more that I can add other than - Your BTL income means that you are taxed under self assessment and, accordingly, your final tax liability is based on all of your taxable income. You cannot decide which will and which won't be under self-assessment. However, it is clear that this is not an answer which appeals to you and I doubt that my restating of this will have any effect.

zygurat789

nomunnofun wrote: »

There is nothing more that I can add other than - Your BTL income means that you are taxed under self assessment and, accordingly, your final tax liability is based on all of your taxable income. You cannot decide which will and which won't be under self-assessment. However, it is clear that this is not an answer which appeals to you and I doubt that my restating of this will have any effect.

I don't think people are taxed under self assessment.
The rules are:
If you have certain types of income then you have to complete a tax return, known as a self assessment tax return or self assessment for short but it is a tax return. BTL income is, in law, one of those types of income.
If you complete and submit your tax return by the end of October (is it?) then you do not have to calculate your tax liability, self assess, HMRC will do the calculation for you.
BTL income for the year to 5 April 2012 should have been included on the tax return which had to be submitted by 31 January 2013. I believe you can still access tis return via the HMRC website and make amendments.

nomunnofun

The op refers to 'last tax year' in his op which I take to be 2012/13. He also wants the tax on his other income to be calculated without reference to his btl income which is impossible (see post 10). I do take your point though.

MrsNut

You should effectively be able to keep both separate - and the way to do it is through a SA return.

I assume you have declared the losses from your BTL in the past. Such losses can only be set against property income in the future - so if you have made (say) £6K of losses in past years (and have recorded them on previous SA returns) and make (say) a £2K profit this year then your return will show

Profit £2K
Less loss b/f £2K
Taxable for year £0

Loss carried forward £4K
and the £4K can be set against future property profits. So you put the return in and the two two are dealt with separately.

What you can't do is only declare part of your income on a return.

Doing a return online is the quickest way of sorting this.

nomunnofun

MrsNut wrote: »

You should effectively be able to keep both separate - and the way to do it is through a SA return.

I assume you have declared the losses from your BTL in the past. Such losses can only be set against property income in the future - so if you have made (say) £6K of losses in past years (and have recorded them on previous SA returns) and make (say) a £2K profit this year then your return will show

Profit £2K
Less loss b/f £2K
Taxable for year £0

Loss carried forward £4K
and the £4K can be set against future property profits. So you put the return in and the two two are dealt with separately.

What you can't do is only declare part of your income on a return.

Doing a return online is the quickest way of sorting this.

Totally agree - I tried this approach in post 11

jimjames

MoneySavingMission wrote: »

I have only entered a profit on BTL which is actually a false profit as I don't have the excess money it is simply that I can't offset the capital component of mortgage against my annual accounts. Previous years BTLs have been in loss and declared via an accountant.

I'm not sure you fully understand the BTL rules. It is not a false profit. It is a real profit even if you are having to pay back capital for the mortgage as you cannot claim the cost of the capital just the interest. HMRC do not care how you pay back the capital for your property.

Could you ask your accountant to deal with this to help resolve it or was he linked to the employment?

Dazed_and_confused

MoneySavingMission wrote: »

can the office not sort directly? without self assesment? All information / documentation sent to the office last month prior to end of tax year. I am only now in a position to complete annual BTL accounts so this is why submitted seperately.

No. This will only be sorted by you completing your Self Assessment return. I am pretty sure the tax people will just send you your documents back and tell you any refund will be established by you completing your self assessment tax return. This is how tax works, you have rental income so you need to do tax returns, the tax return includes all of your taxable income for the year and any repayment of tax deducted at source (or any extra tax due) is determined from this.

You can't have a PAYE calculation and a separate self assessment calculation just for your BTL income.

Several other posters have tried to explain this to you, you might not like it but everyone is telling you the same thing because that is how the tax system works.