Tax question

saverbuyer

irishjohn wrote: »

Ceon - unfortunately in a forum such as this you find those whose first instinct is to pass judgement, on the assumption that they fall into the know all category.

Be assured though that those of us who enjoy helping far outweigh them. Keep posting and asking and do your best to ignore those who get their thrills from their attitude. Interesting comment from one who wants to be a nicer friend!!

I think it's a valid enough point. Tax is one of the basics. Lacking basic knowledge here could point to short comings elsewhere.

At the end of the days, it's someone else's home you'll be responsible for, it's not like renting a DVD.

bonjovi99

It can be a bit of a minefield at the start (I've been renting out a house for 10 years) The single most important thing is find a good tenant with references & possibly a guarantor.
Seek advice from an accountant, You can claim dilapidations each year as a percentage of your rental income.

Tansy_1980

The wear and tear 10% allowance is ending in March - this was announced in yesterday's budget. https://www.gov.uk/government/news/summer-budget-2015-key-announcements

There will be a new system, but you'll only be able to claim on actual expenditure. Can't work out if this means landlords will be more or less likely to replace items.

qwert_yuiop

Tansy_1980 wrote: »

The wear and tear 10% allowance is ending in March - this was announced in yesterday's budget. https://www.gov.uk/government/news/summer-budget-2015-key-announcements

There will be a new system, but you'll only be able to claim on actual expenditure. Can't work out if this means landlords will be more or less likely to replace items.

Looks like interest as an allowable expense for taxation purposes is on its way out, albeit over a number of years, and rightly so.

What's that mean? Property investment limited to those who don't need mortgages? It ought to mean less money available to buy houses, and lower prices.

tara747

CEON44 wrote: »

As I said, I just started letting out this property. I am not a professional landlord, and have never let property before, so I've never had to deal with tax issues. I assumed that that was the nature of this forum, to ask money related questions and get respectful answers without some know it all being patronising

What on earth is a 'professional landlord'?

You're a landlord. All landlords have to abide by the same laws. I was simply surprised by your ignorance of the law, and that you hadn't asked this question *before* starting out.

Can you imagine someone coming on here saying they'd just opened a restaurant and asking if they needed to do tax self-assessment???

irishjohn wrote: »

Ceon - unfortunately in a forum such as this you find those whose first instinct is to pass judgement, on the assumption that they fall into the know all category.

Be assured though that those of us who enjoy helping far outweigh them. Keep posting and asking and do your best to ignore those who get their thrills from their attitude. Interesting comment from one who wants to be a nicer friend!!

That was my comment. And I thought it was pretty fair, tbh.

And my position is: I have had to deal with my fair share of cr4p landlords who don't know their 4rse from their elbow regarding their legal obligations, and some who do know but wilfully ignore them.

Nothing worse than 'amateur' landlords who think they can have all the benefits without any responsibilities.

OP - apologies if I offended you.

I wish you luck, and your tenants as well.

tara747

saverbuyer wrote: »

I'm sorry but there's no such thing as an amateur landlord. Whilst perhaps Tara could have worded it better, I get the sentiment, you are now responsible for someone else's home, your have responsibilities. Tax is one of the basics. If you're uncomfortable, or want to fill in knowledge gaps I'd pay for some advice. Failure to meet your statutory duties could end in a large fine or worse. Get it right now.

HMRC consider all letting to be of a professional nature. Personal opinion is no defence.

Good luck. There's some good basic guides pinned to the main board. Not NI specific but much of it applies. Tax is the easy part.

saverbuyer wrote: »

I think it's a valid enough point. Tax is one of the basics. Lacking basic knowledge here could point to short comings elsewhere.

At the end of the days, it's someone else's home you'll be responsible for, it's not like renting a DVD.

Well said, saverbuyer.

tara747

Tansy_1980 wrote: »

The wear and tear 10% allowance is ending in March - this was announced in yesterday's budget. https://www.gov.uk/government/news/summer-budget-2015-key-announcements

There will be a new system, but you'll only be able to claim on actual expenditure. Can't work out if this means landlords will be more or less likely to replace items.

qwert_yuiop wrote: »

Looks like interest as an allowable expense for taxation purposes is on its way out, albeit over a number of years, and rightly so.

What's that mean? Property investment limited to those who don't need mortgages? It ought to mean less money available to buy houses, and lower prices.

Copied from the Budget announcement linked above. Both seem like good moves IMHO.


"15. Restricting tax relief for wealthier landlords

Currently, individual landlords can deduct their costs – including mortgage interest – from their profits before they pay tax, giving them an advantage over other home buyers. Wealthier landlords receive tax relief at 40% and 45%. This tax relief will be restricted to 20% for all individuals by April 2020.

In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings."

CEON44

What on earth is a 'professional landlord'?

You're a landlord. All landlords have to abide by the same laws. I was simply surprised by your ignorance of the law, and that you hadn't asked this question *before* starting out.

Can you imagine someone coming on here saying they'd just opened a restaurant and asking if they needed to do tax self-assessment???



Im sorry I ever posted here. The thread is now littered with comments on the whys and wherefores of being a landlord. Let me make it clear. I have everything in place as it should be with regards renting and know what is required from me and my tenant. I neither needed nor asked for, any other advice on renting. Yet I get berated for asking a simple question about tax.
Why do people feel the need to kick others for the sake of it!!
Bear in mind I have until next April to get to grips with the tax and I would have found out all about it anyway without coming to this forum to ask.
But it seems trolls even exist here in the guise of helping. Helping with one hand but slapping down with the other. Goodbye.
From here on I'll get involved in respectful discussion on different media

tara747

CEON44 wrote: »

Im sorry I ever posted here. The thread is now littered with comments on the whys and wherefores of being a landlord. Let me make it clear. I have everything in place as it should be with regards renting and know what is required from me and my tenant. I neither needed nor asked for, any other advice on renting. Yet I get berated for asking a simple question about tax.
Why do people feel the need to kick others for the sake of it!!
Bear in mind I have until next April to get to grips with the tax and I would have found out all about it anyway without coming to this forum to ask.
But it seems trolls even exist here in the guise of helping. Helping with one hand but slapping down with the other. Goodbye.
From here on I'll get involved in respectful discussion on different media

Like it or not, letting property is a business according to HMRC, and it's not unreasonable to point that out.

My initial comment to you was reasonable IMHO. If you disagree, please point out what was unreasonable about it.

You replied calling me a 'know it all' and now you're calling me a troll. Who's berating whom here?

waltsalt

You are being harsh tara747. !!!!!!, people don't know until they know.

If this is the first time the OP is submitting a self-assessment tax return then they have to learn how to do it.

By your rationale people shouldn't be allowed to drive cars cos they can't do it straight away so they are a danger to other people.

I see you deleted your post. How come?