avoiding SA tax return

dodgymix

I spoke to an accountant recent regarding various matters including my Buy2Let

She said I just needed to write a letter to HMRC of rent income less allowable expenses.
Cant remember number exactly but think it was £2.5k profit (or £5k for a couple) could be made without needing to complete a tax return..
The accountant offered to write the letter for me and wife but its was £60 each + VAT. Accountant also advised as long as I stick to my £11k PA capital gains profit on shares I dont need to report via Self Assessment.

Anyone know where I can get a simple letter head for this? or just guidance on what I need to do.

I earn via PAYE, I have a share portfolio but im selling off shares within my Capital gains allowance and Divs are incurring tax before being paid to me.

The profit in the buy 2 let was £200 as it was empty for a few months and a few things broke

£100 each so Tax £20 each?
cl;early I dont want to bother filling in a form that frightens a huge part of the uk self employed population

TheCyclingProgrammer

As I said in the othe thread, ring HMRC and tell them you wish to report a small amount of rental income below the threshold for PAYE collection. They may ask you to write a letter - which you can do yourself - or they may take the figures over the phone. They will send you and/or your employer a coding notice.

Likewise for any other taxable income that hasn't already had tax deducted at source, you should let HMRC know. If you're not a higher rate tax payer your dividends will already have tax deducted by way of the tax credit. Any capital gains up to the allowance do not be reported unless you're already submitting a SA.

Self assessments are certainly not scary and aren't really difficult to fill in but you definitely want to avoid doing one if you don't have to.

dodgymix

TheCyclingProgrammer wrote: »

As I said in the othe thread, ring HMRC and tell them you wish to report a small amount of rental income below the threshold for PAYE collection. They may ask you to write a letter - which you can do yourself - or they may take the figures over the phone. They will send you and/or your employer a coding notice.

Likewise for any other taxable income that hasn't already had tax deducted at source, you should let HMRC know. If you're not a higher rate tax payer your dividends will already have tax deducted by way of the tax credit. Any capital gains up to the allowance do not be reported unless you're already submitting a SA.

Self assessments are certainly not scary and aren't really difficult to fill in but you definitely want to avoid doing one if you don't have to.

thanks



I spoke to HMRC about my B2L income and advised it was only a couple of hundred quid profit so negible tax although the call centre said I should still do a SA

I spoke to an accountant around shares / capital gains but mentioned the buy 2 let as a side issue

The accountant said i should just write a letter and either offer to pay it as a one off payment or ask them to adjust my tax code

any idea when I would need to send this letter by?

TheCyclingProgrammer

dodgymix wrote: »

I spoke to HMRC about my B2L income and advised it was only a couple of hundred quid profit so negible tax although the call centre said I should still do a SA

Whoever you spoke to was wrong. They should be able to collect the tax through your tax code. Ring back and speak to somebody who knows what they are talking about.

I spoke to an accountant around shares / capital gains but mentioned the buy 2 let as a side issue

The accountant said i should just write a letter and either offer to pay it as a one off payment or ask them to adjust my tax code

any idea when I would need to send this letter by?

You need to inform HMRC of any untaxed earnings for 2013/14 by 5th October but you won't be penalised as long as any tax that is due is paid by 31st January.

Spidernick

dodgymix wrote: »

I spoke to an accountant recent regarding various matters including my Buy2Let

She said I just needed to write a letter to HMRC of rent income less allowable expenses.
Cant remember number exactly but think it was £2.5k profit (or £5k for a couple) could be made without needing to complete a tax return..
The accountant offered to write the letter for me and wife but its was £60 each + VAT. Accountant also advised as long as I stick to my £11k PA capital gains profit on shares I don't need to report via Self Assessment.

Anyone know where I can get a simple letter head for this? or just guidance on what I need to do.

I earn via PAYE, I have a share portfolio but im selling off shares within my Capital gains allowance and Divs are incurring tax before being paid to me.

The profit in the buy 2 let was £200 as it was empty for a few months and a few things broke

£100 each so Tax £20 each?
cl;early I dont want to bother filling in a form that frightens a huge part of the uk self employed population

Probably not an issue, but just to clarify: gains under the annual exemption do need to be reported where the sale proceeds are more than four times the annual exemption. I see this quite a lot with same-day sales of stock option exercises where there is in effect a nil gain for Capital Gains Tax purposes (or more usually a small loss re commission charges) but it still needs to be reported on the CGT pages due to the level of the proceeds (if circa £44K+).