Concerned about tax

G_M

Fiveinourhouse wrote: »

We have sold the property and payed both of those initial taxes. The flat is now being rented but I was looking at info about the tax we are due on income.

I'm confused. Which property have you sold? You originally said:

....struggled to sell our flat. ......we now rent out our flat and live in our new family home.......The flat is rented out for £550 per month.

so you seem to now own the flat (let out) and 'our new family home'. Is there a 3rd property which you sold?

Fiveinourhouse

It wasn’t an excuse. I was looking for help to make sure I did the right thing. A lot of judgmental comments instead. I’m sorry I posted. I wrongly believed that this was a helpful forum. I will go elsewhere. Thank you to those that did have wise advice.

Fiveinourhouse

G_M wrote: »

I'm confused. Which property have you sold? You originally said:
so you seem to now own the flat (let out) and 'our new family home'. Is there a 3rd property which you sold?

Property A our flat was for sale after three years we took it off the market and decided to rent it out instead. We then bought property B which is our home currently. We did all of this with the help and advice from a financial advisor.

We conducted the correct checks for gas etc and paid tax on both properties.

I now need to go through the process of declaring the property for tax purposes. It was this that I was looking for information about as I haven’t done this before. I want to ensure that I am following the correct procedures. We are new to being landlords and didn’t initially want to be but we wanted to move. Hope that makes sense.

AnotherJoe

Fiveinourhouse wrote: »

Property A our flat was for sale after three years we took it off the market and decided to rent it out instead. We then bought property B which is our home currently. We did all of this with the help and advice from a financial advisor.

We conducted the correct checks for gas etc and paid tax on both properties.

I now need to go through the process of declaring the property for tax purposes. It was this that I was looking for information about as I haven’t done this before. I want to ensure that I am following the correct procedures. We are new to being landlords and didn’t initially want to be but we wanted to move. Hope that makes sense.

But you mentioned selling a property as well. Was that a typo?
Given how little you understand about the tax, and it can be really confusing, i did it for a few years and am glad I'm done with that now, you definitely need to get an accountant to do the numbers for you, their fees could easily be covered by just one mistake you make on your return that mistakenly means you pay more tax than you need to without realizing.
Most likely your tax will be low, especially if you have a mortgage on the property, or if the tax is high, you might decide you are better selling the rental rather than have money trickling away each year.

G_M

Fiveinourhouse wrote: »

We have sold the property and payed both of those initial taxes.

?????????????????????


With regard to income tax on the rent, you've been advised of the need to declare the rent o HMRC, and pointed in the direction of several websites for further information.


No one can possibly answer your original question ("how much tax we should be paying") as there are many variables dependant on your specific circumstances. But the advice to see an accountant is sensible.


If you keep the rental property, then once you've sorted out the historic and current tax situation, and in the process learned what's what, then in future years you may well be able to submit your own tax returns without an accountant.

Crashy_Time

Fiveinourhouse wrote: »

It wasn’t an excuse. I was looking for help to make sure I did the right thing. A lot of judgmental comments instead. I’m sorry I posted. I wrongly believed that this was a helpful forum. I will go elsewhere. Thank you to those that did have wise advice.

Some posters seem to get triggered by landlords on here for some reason.

wesleyad

Crashy_Time wrote: »

Some posters seem to get triggered by landlords on here for some reason.

Well the opening line of the OP is they couldn't sell their flat and so are forced to let it out, to which a couple of people pointed out that reducing the price would have sold it. OP decided that was judgmental.

Are you suggesting that the price was not too high? That's not like you! :rotfl::rotfl:

need_an_answer

OP your tax will depend on several factors not just the income you receive but how you choose to manage the property also.

Do you employ an agent to manage?
How are you dealing with repairs or maintenance issues that relate to the property?

Posters are here to give you advice but it isn't a simple question of "should you be paying tax" with an answer of yes or no

You are able to offset some costs but without knowing how you are either getting money for or spending money on,in connection with the property its very difficult to give a straight answer

There are also many implications of becoming a LL other than just a gas safety check so it is important that you understand not just the tax aspect of running your business but also the legislation and obligation you have as a LL