Tax return on rental property?

qwertyqwerty

Hi thanks for all the replies. I am not in it to make money, I have moved into my partners house and because of the slow market, I got Consent To Let from my lender until the market picks up. I am on an interest only mortgage. and monthly profit after paying mortgage and insurance is about £2. When I add in expenses such as getting certs etc over the year I am breaking even/making a loss.

Kynthia

qwertyqwerty wrote: »

Hi thanks for all the replies. I am not in it to make money, I have moved into my partners house and because of the slow market, I got Consent To Let from my lender until the market picks up. I am on an interest only mortgage. and monthly profit after paying mortgage and insurance is about £2. When I add in expenses such as getting certs etc over the year I am breaking even/making a loss.

It's good to declare this loss correctly as it can be used to offset profits in future years.

benjus

00ec25 wrote: »

... in that case you will be put on a tax return and normal lump sum payment rather than being able to spread the payments over 12 months via the tax code & PAYE option

Nothing to stop you setting up a monthly direct debit to HMRC for your estimated monthly tax, of course.

00ec25

benjus wrote: »

Nothing to stop you setting up a monthly direct debit to HMRC for your estimated monthly tax, of course.

a tax code adjustment collects the tax monthly in arrears after you submit your calculations so takes 12 months to pay the previous years tax

lump sum on submission of tax return pays it on the due date and means you have had the use of the money for the preceding 12 months (assuming you pay in January) eg: kept in a savings account earning interest

a voluntary monthly standing order (I doubt HMRC would set up a DD for you) would be paying your tax in advance of submitting your calculation - that is hardly MSE advice now is it since you forego the interest earning potential and pay the tax in advance of it being due. Surely you can manage your money better than that?

Halle71

With starting our let more than half way through the year and taking our tax deductible expenses into account, I doubt we will have to pay tax in year one but this is all useful info for future years.

Cortinaa_GTR

So if I started renting my property out in July 2013, then I don't need to inform HMRC until Oct 2014 advising them of my income during the period July 13 - Mar 14 (9 months) period. Is that right?

G_M

Parnott wrote: »

So if I started renting my property out in July 2013, then I don't need to inform HMRC until Oct 2014 advising them of my income during the period July 13 - Mar 14 (9 months) period. Is that right?

Yes.

Or Jan 2015 if you do it online.

Cortinaa_GTR

Thank you G_M.


I had registered for self assessment but it was requesting info for FY 12/13 so wanted to check I was jumping the gun a bit.