Landlord Tax 2015-16

Confusing

Hello,

I am an accidental landlord having moved to London, where I am renting, whilst renting out my house elsewhere.

I'm aware that the deadline for self assessment for the 2015-16 tax year is fast approaching and using the calculator the telegraph buy-to-let calculator (27 JUNE 2016 • 4:05PM) that I found online I think i need to make a payment of c£1500. The MSE website doesn't let me, as a new user, post the link here.

I am a higher rate tax payer (for a small portion of my income during this particular tax year anyway) which i understand does have an impact on the calculation?


The confusion I have is that since the year 2015-16 has passed the calculator above is not relevant as it calculates based on the tax rules from 2016-17 onwards. I can't find a calculator online that calculates the 2015-16 tax year. This presumably because there would be limited interest in such a tool now.

My (limited) understanding is that the tax system changed between 2015-16 and 2016-17 and so there may be some tax relief, or other benefit, that I was entitled to then but will not be entitled to in 2016-17 - the year for which I'm currently using the calculator.

I just want to make sure, as best I cam that I'm completing the calculation correctly.

I'm sure there will be lots of people now saying that i shouldn't have been renting the property if I didn't know what i was doing and I agree with them. The reason I have been in this situation was that i didn't want to sell when I moved to London as I would be off the property ladder when i was uncertain whether I actually wanted to stay in London longer term and therefore buy here. I will likely sell the property in the Summer and buy here but before this I need to take care of the tax I owe currently.

Any help would be much appreciated.

Thanks

csgohan4

If you are unsure, an accountant will be best placed to answer you in more detail. However if you input your details on the online self assessment portal, it should give you a figure of what you owe anyways, have you been saving up to pay the potential tax?

Confusing

I used the self assessment online portal. I didn't fully understand all of it but the figure was slightly higher than when I'd used the other simpler online calculators so i assumed as long as the figure is higher and I paid it then I can't really go far wrong.

How would anyone ever find out if I did have it wrong? I'm sure the taxman can audit my figures but I'm pretty happy with them and can back them up with invoices etc.

What if I had got them wrong? What would the penalty be?

There is someone in my town who owns a number of properties where he's done them up and then rented out and is widely rumoured not to declare any of the income. How does he get away with this?
Not that I'm advocating this behaviour in any way.

I would rather not get an accountant as I've pretty much decided to sell as soon as I can. Its not worth the hassle or the expense and i understand the tax changes coming in will make BTL even less attractive?

Thanks