Do i need file a tax return for tax year 2016/17?

himalayasalt

In early July 2016 I moved to the UK after being abroad for 10 years. Between my arrival and the end of that tax year, I was renting out a room to a lodger. The rent per month was 250 for a total of 3k. I had no other income, I wasn't living like a king

Do I have to pay tax on the rental income from my lodger?
If your income from renting your spare room is the rent a room scheme ceiling of £7,500 (which increased from £4,250 on 6th April 2016) or under – regardless of your overall income from other sources, you don’t need to take any action as far as HMRC is concerned, unless you already do a tax return for other reasons.

Never had to file a tax return in the UK, for any reason.

And from gov.uk:

How it works
The tax exemption is automatic if you earn less than the threshold. This means you don’t need to do anything.

You must complete a tax return if you earn more than the threshold. From 6 April 2016, this is £7,500. For the 2015 to 2016 tax year, the threshold was £4,250.

So do I need to file a self assessment tax return for the tax year in question?

I'm going to file online in January for the 2017/2018 tax year as I was self employed and working. That is in addition to the room rent which has continued. Since I now have to file a tax return, do I just fill in the room rent for the 17/18 tax year? If I mention the rent from the 16/17 tax year in the return am I penalised with late filing, even though I did not have to file a self assessment tax return for that year?

Thanks.

Dazed_and_confused

Given the links you have quoted why do you think you need to complete a return for 2016:17?

Late filing penalties are charged if you are late filing a return. If you haven't been asked to file one how you can you possibly be late in filing it???

himalayasalt

The grey area is I missed the self employment registration deadline of October 2018. I'm now almost two months late (assuming I didn't need to register by October 2017? But why would I if no need to inform HMRC of the 3k for that tax year?)

So i'm concerned that that changes things regarding late filing. I've never registered as self employed in the UK. I think that's called a 'failure to notify'.

Dazed_and_confused

That deadline relates to 2017:18 not 2016:17.

Unless you are Doctor Who you cannot change that. Make sure you register immediately and file your return on time. Then there can be no late filing penalties.

There could be other penalties but filing (and paying) on time is quite possibly sufficient to keep HMRC happy.

himalayasalt

There could be other penalties but filing (and paying) on time is quite possibly sufficient to keep HMRC happy.

Penalties relating to being 2 months late to register as self employed? I also never earned more than 5k from self employment relating to freelance work.

himalayasalt

Oh, the only other tax related issue is from time to time while I was abroad my parents would send me cash gifts to my UK bank account that I could withdraw from at foreign atm. As far as i understand it with cash gifts the recipient doesn't have to file a tax return? It was deposited into a current account with no interest, not a savings account and immediately withdrawn. This was occasional. This family member passed away a few years ago and their cash gifts to me would have been included by the executor of the estate into any IHT calculations. Say the last gift was 4 years ago.. is that 4 years of late filing penalties on the gift? We are talking small amounts here, not any windfalls.

TheCyclingProgrammer

You won’t get a late notification penalty for registering late so long as you get your tax return in on time.

sheramber

Register for self employment asap.

Complete your 2017/18 self assessment return and pay any tax due before 31 January. Do not leave it to the last minute.

If your income from the lodger is not more than £7500 for the year then you can claim the Rent a Room allowance by completing the appropriate page of the return.
This will mean you do not pay any tax on the rental income.

You do not enter any details of the 2016/17 income on this return.