Fines for self assessment on rental income

Caz3121

they may have planned to get it sorted through PAYE but, as she has not been working for 9 months I assume the altered tax code is not being used on anything currently

babyblade41

May I just ask, why didn't you ask your accountant friend when you first starting letting out your property?? It must be a close friend to get them at the weekend

..But speaking to an accountant later in the week ....

Bow out now you have had free advice... it would have been better to update as it will educate others . pffft

sheramber

anxiouscharlie wrote: »

It was up to HMRC to change her tax code when we notified them. We were told there was no self assessment to fill out and we have not revived a tax return to fill in until now. Profits for rental income under £1000 have no tax due, profits for £1000-2500 are to be taken from PAYE. We are definitely below £2500, we might even be below £1000. Thanks all, bowing out of this thread now until we have spoken to HMRC and met with our accountant in the week.

Sorry, that is not correct.

Firstly, it is your gross income- before any expenses are taken off- that the £1000 refers to , not your profit.

Secondly, it only applies from 6April 2017. So only the 2017/18 tax year, not the previous year.

While you do not need to send in a return if your profit is under £2500 you have not advised HMRC that that is the case so they have issued a tax return to get that information.

anxiouscharlie

Wow you are all excessively nasty on this forum, bowing out now.

00ec25

anxiouscharlie wrote: »

Wow you are all excessively nasty on this forum, bowing out now.

excuse me, the presentation of facts to correct statements you have made in error, or because of partial understanding, is not being "nasty"

It is simply stating facts for the benefit of future readers

the property income allowance (see link in my previous post) applies to income, not profit

the 2,500 threshold is indeed for profit but applies to having your tax code adjusted in the following year. You are beyond the following year.



yes you may get HMRC to make an exception for you now, but for the benefit of other readers that is an exception, not an entitlement due to your specific circumstances caused by you being "late"

You have been sent a tax return, until that is rescinded you are required to submit it. Your tax code should not be adjusted to collect back taxes unless that is a result of a specific (documented) arrears payment plan you agree with HMRC

babyblade41

I never understand why people who post looking for educated advice then go off in one when the advice isn't what they want to hear

If you pay me I will tell you exactly what you want , only it won't be correct ..

I hope the OP comes back to read the rest.. you really can't take that stance with HMRC .. they will find you, the fines will go up and you can't stick your head in a cushion , they will dig at you ... I should know my cousin is an ~ ex HMRC tax inspector.. trust me that wasn't a help during the last 35 years

anxiouscharlie

Not responding to all the messages on here, just giving you an update for closure/future advice. We were right that a self assessment wasn’t warranted. We are being rebilled for anything we may owe that wasn’t taken correctly via PAYE, and all penalties cancelled. No CGT due as profit was so low. We will meet with an accountant in the week (that is a new friend for those querying why we didn’t ask them before). Thanks to all that were understanding. Admins can you close this thread now? Thank you.