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Tax on rental

13

Comments

  • theartfullodger
    theartfullodger Posts: 15,869 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 October 2021 at 1:17PM
    AdrianC said:
    OP - what have you submitted on your self-assessment tax return in the past?
    Quite ....

    If HMRC do accept that you've only been getting £340/mo rent.. then you could have been declaring a loss rather than profit, carried those losses forward year-by-year, and then have saved tax in future years...


    Do please keep us informed on what happens over the months ahead, please.
  • london21
    london21 Posts: 2,208 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    col81 said:
    According to all calculators i should be paying £0
    Depends on your total income. work + rental income.

    If you total income is less than the yearly allowance of £12,570 then it will be 0.

    https://www.gov.uk/income-tax-rates 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    london21 said:
    col81 said:
    According to all calculators i should be paying £0
    Depends on your total income. work + rental income.

    If you total income is less than the yearly allowance of £12,570 then it will be 0.

    https://www.gov.uk/income-tax-rates 
    But HMRC will want to see the working via self-assessment.

    I have a horrible feeling the OP will turn out not to have been submitting them.
  • col81
    col81 Posts: 338 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Ive never submitted anything. I earn £38k pa plus this £4500 rental income. Thanks for pointing it out to me i will deal with it and take it on the chin 
  • theartfullodger
    theartfullodger Posts: 15,869 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well, good luck:  Better to start promptly than find they're coming for you minds already made up.

    See-
    https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

    Re Mortgage & Insurance: Most do not permit renting to relatives.  Check your paperwork!
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    col81 said:
    i was under the view that it is actually costing me oney so i would pay no tax. I think i am out of pocket on it by around £100 pcm let alone making money!
    Why bother doing it?
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    sadly OP didn't like what they wanted to hear and deleted their Opening post
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • steampowered
    steampowered Posts: 6,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    col81 said:
    Deleted thanks
    How rude to delete your post, after people have taken the time to respond.

    You might not like the answer, but there is no point in people giving you an incorrect answer to make you feel better.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    steampowered said:
    col81 said:
    Deleted thanks
    How rude to delete your post, after people have taken the time to respond.

    You might not like the answer, but there is no point in people giving you an incorrect answer to make you feel better.
    Not to mention pointless since I quoted the opening post 😂
  • saajan_12
    saajan_12 Posts: 5,477 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Pixie5740 said:
    steampowered said:
    col81 said:
    Deleted thanks
    How rude to delete your post, after people have taken the time to respond.

    You might not like the answer, but there is no point in people giving you an incorrect answer to make you feel better.
    Not to mention pointless since I quoted the opening post 😂
    Yup, that's why someone should always quote it early on! 
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