Rental income tax?

ben100000

I bought a house last year and rented it out straight away. My rental income is around £9000 and this is my only income I have, I am just wondering is this taxable as it is my only income?

00ec25

so you have no job? no savings interest? no pension? no cash in hand work? Would it be too obvious to ask HMRC or would that draw too much attention to you? Presumably you live off the earnings of your OH? Are you sole owner of the property? Is it mortgaged? £9,000 income is not your taxable profit or you are not providing the services a landlord is required to do.

the tax rules are easy to find:
https://www.gov.uk/check-if-you-need-tax-return

hint: you have rental profit (income) in excess of £2,500

muhandis

Yes, your rental profit is taxable.

As per HMRC guidance, you are required to report this income through a self assessment tax return.

If this is your only income, then there should be no tax due at the end of a self assessment as you are well within your personal allowance.

From what you’ve said, I assume the following does not apply. If it does, then the rules are different.

—————————-
what you do counts as running a business, for example if all the following apply:

being a landlord is your main job
you rent out more than one property
you’re buying new properties to rent out
——————————

ben100000 wrote: »

I bought a house last year and rented it out straight away. My rental income is around £9000 and this is my only income I have, I am just wondering is this taxable as it is my only income?

theartfullodger

ben100000 wrote: »

I bought a house last year and rented it out straight away. My rental income is around £9000 and this is my only income I have,...?

??

No eBay, no car-boot, no bank interest, no benefits (including CB, CTC, WTC etc ..), no job, no cash-in-claw stuff?

"Last year"? EXACTLY what date did rental start (eg before 5th April 2018??)

Wonder what you got wrong with rental paperwork.

Done any training in how to be a landlord? If not start - NOW!



Declare

csgohan4

OP did you buy with a mortgage or outright, if the former, do your lender's know your renting it out outright.


If not you risk mortgage fraud and the loan being recalled

ben100000

Sorry for the lack of info, basically I am a student & bought the house cash with gift from parent around July last year. I am completely in the know regarding being a landlord with all paperwork, safety etc but it's just the tax on that amount I'm not sure of as it is not near my personal allowance?

00ec25

ben100000 wrote: »

it's just the tax on that amount I'm not sure of as it is not near my personal allowance?

then read post 2 (or learn how to use an internet search engine, eg: google)

muhandis

Irrespective of your status as a student, if you earn more than £2,500 (after allowable expenses) as income from property that you own, HMRC requires you to report it using a Self Assessment (SA) tax return.

Assuming you have not done an SA before, you need to register by 5 October following the tax year you had rental income. So by 5 October 2019 for the tax year ended 5 April 2019.

Don't worry about it being under the personal allowance, all that means is that at the end of the tax assessment, HMRC will tell you that the tax due is a big fat zero.

The online self assessment is fairly straightforward, plenty of help/guidance is available during the process.

ben100000 wrote: »

Sorry for the lack of info, basically I am a student & bought the house cash with gift from parent around July last year. I am completely in the know regarding being a landlord with all paperwork, safety etc but it's just the tax on that amount I'm not sure of as it is not near my personal allowance?

G_M

As others have said, yes, you need to declare the income toHMRC each year, but no, you probably won't have to pay any tax.


There are penalties not not declaring it though, so don't ignore this on the basis that tax is not due.