Rental income - queries

SuperSaver123

Hi,

Few questions:

1. Can I receive rental income for a property that is in my husband's name? Perhaps a nominating agreement or something like that needs to be put in place?

2. Do you have to register as self employed within 3 months from the start of the tenancy agreement?

3. Can I declare all of the rental profit in my name if the property is in our joint name? (I suppose if Q1 is answered as yes this would be a yes too.)

4. Can I deduct interest on the loan that was taken to refurbish the property and to pay stamp duty if it has no mention of the property details on the loan agreement? (it is a loan, not a mortgage).

5. Can I also deduct other expenses such as repairs if I claim 10% F&F?

6. Can I receive rental income and SMP?

Thanking you in advance!

Pennywise

No, if the property is in your husbands sole name, all the property income is his. If it were put into joint names, half would then be yours. For a married couple, the property income has to be taxed in the same way as the property is owned.

Yes, loan interest should be fine if you've an "audit trail" showing how the money was used.

You can only have the 10% wear and tear if it is fully furnished. If you do, then you can only claim repairs to the property itself, i.e. decorating, property maintenance, etc., NOT to repair/replace any of the furnishings, furniture nor equipment. It's one or the other.

SuperSaver123

Thank you!

Would you know if I have to register for self assessment within 3 months from the start of tenancy agreement? Or is it as long as the registration is in before 31st Jan to submit the self assessment on time?

HappyMJ

A landlord is not self employed. It's an investment. You declare investment income the same as interest/dividends. It's not self employment so don't register as self employed.

SuperSaver123

ah! thanks. So I just need to get the code for self assessment?

saintalan

SuperSaver123 wrote: »

ah! thanks. So I just need to get the code for self assessment?

https://www.gov.uk/register-for-self-assessment/overview

the deadline for on line self assessment for current year 2015/2016 will be Jan 31, 2017 together with any tax due plus in July 2017 there may be an advance payment on following year.

Dont forget any CGT due when you sell which would be split if joint. If you have ever lived in the property or plan to that would also help.

Alan

booksurr

saintalan wrote: »

https://www.gov.uk/register-for-self-assessment/overview

the deadline for on line self assessment for current year 2015/2016 will be Jan 31, 2017 together with any tax due plus in July 2017 there may be an advance payment on following year.

Dont forget any CGT due when you sell which would be split if joint. If you have ever lived in the property or plan to that would also help.

Alan

rental income is not self employment therefore there is no "advance" payment (payment on account) associated with it

you are however correct regarding the 31 Jan 2017 deadline for payment of any tax due from the April 15 - April 16 tax year. As per the link you should register by 30 Oct 2016 but there is no penalty if you are late provided you complete the payment by 31 Jan 2017 (having submitted the tax return online, not by paper)

saintalan

booksurr wrote: »

rental income is not self employment therefore there is no "advance" payment (payment on account) associated with it...

I would like to say "wrong" but will be respectful to your knowledge.

All I can say is that for the past few years I have made a payment on account in July, perhaps I am misinterpretating what it is for.

Regards

Alan

zygurat789

saintalan wrote: »

I would like to say "wrong" but will be respectful to your knowledge.

All I can say is that for the past few years I have made a payment on account in July, perhaps I am misinterpretating what it is for.

Regards

Alan

In my experience HMRC tend to tax rental income through the code number, the OP did mention SMP so presumably has a PAYE employment.
This doesn't relieve her of the responsibility to submit a tax return.

Pennywise

booksurr wrote: »

rental income is not self employment therefore there is no "advance" payment (payment on account) associated with it

Yes, there is. Payments on account aren't solely associated with self employment. Other forms of income, including property rental income, can trigger payments on account.

SuperSaver123

zygurat789 wrote: »

In my experience HMRC tend to tax rental income through the code number, the OP did mention SMP so presumably has a PAYE employment.
This doesn't relieve her of the responsibility to submit a tax return.

really? So I would only pay extra tax on the surplus of rental income above tax free amount? and the rest would be collected through tax code on my PAYE??

Yes I am on PAYE.