Received HMRC self assessment form

andrew_savva

Hi all, I'll try to keep it as sort as possible...

I'm 38 years old, recently seperated from my fiance who used to live in the town house I own in Dunstable.

There are 3 rooms in the house, and seeing that I was alone in a 3 story property, I thought why not rent one of the rooms out.

I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

A few days ago I received a HMRC self assessment form... it says on the letter they have set up a self assessment record and created a Unique Reference (UTR) for me because:

1. You contacted us to register for Self Assessment.
2. Your Circumstances mean you need to complete a tax return.

I didnt contact them and havent informed anybody about the lodger as the amount she would pay in those 6 month would be far below the amount required in order for me to contact HMRC about getting that extra income taxed. I believe it is around £7k you can earn from rent from a lodger which is tax free. I wil earn £2,100 in those 6 months, so I wouldnt have thought there was a need to tell anybody.

On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us

If we need you to complete a tax return at any other time we will let you know.

Then goes on to say other generic things.

I'm not sure what to do, do I fill out the form, or is it a letter then send to everyone? I havent ever had this letter myself, and I have at this property since 2019.

Is the form anything to do with the lodger specifically or could it be that I'm getting close to the next tax bracket for the past tax year? 

My income was 38k from my work, however my father has transfered me certain amounts through the year to help me out around my home, for eg when I did my HGV class 2 ttaining, I paid it myself and then a few weeks later my dad would transfer me £2k and he informed me the HGV pass was a present from him.
And we would receive a bonus at work at the end of 2023 which was around £700, and other amounts entering my bank account for example my grandparents would send me some on my birthday...

I'm thinking could the amount that has entered my bank account for the past 12 months be at certain level where HMRC have now decided to send me this self assessment form to get a better understanding on my income??

Any help is much appreciated

Thanks all

Dazed_and_C0nfused

It could be chance this has coincided with getting the rental income.

AIUI if you have to complete a return for some other reason you declare that you have rental income covered by the "rent a room" relief but rent a room isn't in itself a reason to complete a return.

Have you worked through the tool here to see if any other reason could apply?

https://www.gov.uk/check-if-you-need-tax-return

NB.  I'm assuming the request is for a 2022-23 return?

[Deleted User]

andrew_savva said:

Hi all, I'll try to keep it as sort as possible...

I'm 38 years old, recently seperated from my fiance who used to live in the town house I own in Dunstable.

There are 3 rooms in the house, and seeing that I was alone in a 3 story property, I thought why not rent one of the rooms out.

I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

A few days ago I received a HMRC self assessment form... it says on the letter they have set up a self assessment record and created a Unique Reference (UTR) for me because:

1. You contacted us to register for Self Assessment.
2. Your Circumstances mean you need to complete a tax return.

I didnt contact them and havent informed anybody about the lodger as the amount she would pay in those 6 month would be far below the amount required in order for me to contact HMRC about getting that extra income taxed. I believe it is around £7k you can earn from rent from a lodger which is tax free. I wil earn £2,100 in those 6 months, so I wouldnt have thought there was a need to tell anybody.

On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us

If we need you to complete a tax return at any other time we will let you know.

Then goes on to say other generic things.

I'm not sure what to do, do I fill out the form, or is it a letter then send to everyone? I havent ever had this letter myself, and I have at this property since 2019.

Is the form anything to do with the lodger specifically or could it be that I'm getting close to the next tax bracket for the past tax year? 

My income was 38k from my work, however my father has transfered me certain amounts through the year to help me out around my home, for eg when I did my HGV class 2 ttaining, I paid it myself and then a few weeks later my dad would transfer me £2k and he informed me the HGV pass was a present from him.
And we would receive a bonus at work at the end of 2023 which was around £700, and other amounts entering my bank account for example my grandparents would send me some on my birthday...

I'm thinking could the amount that has entered my bank account for the past 12 months be at certain level where HMRC have now decided to send me this self assessment form to get a better understanding on my income??

Any help is much appreciated

Thanks all

You are overthinking this. HMRC do not have access to your banking records. The amount lodged to your bank account cannot be a trigger for the issuing of a notification to file a tax return. 

Additionally the income received from your relatives is not taxable. 

Complete the return to include your employment and rental income and tick box 4 (rent a room relief).

https://assets.publishing.service.gov.uk/media/642ae3e3ddf8ad0013ac0c8b/SA105_2023.pdf

[Deleted User]

Dazed_and_C0nfused said:

It could be chance this has coincided with getting the rental income.

AIUI if you have to complete a return for some other reason you declare that you have rental income covered by the "rent a room" relief but rent a room isn't in itself a reason to complete a return.

Have you worked through the tool here to see if any other reason could apply?

https://www.gov.uk/check-if-you-need-tax-return

NB.  I'm assuming the request is for a 2022-23 return?

I would suggest, from the op, that a record has simply been set up at this stage. 

Dazed_and_C0nfused

[Deleted User] said:

andrew_savva said:

Hi all, I'll try to keep it as sort as possible...

I'm 38 years old, recently seperated from my fiance who used to live in the town house I own in Dunstable.

There are 3 rooms in the house, and seeing that I was alone in a 3 story property, I thought why not rent one of the rooms out.

I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

A few days ago I received a HMRC self assessment form... it says on the letter they have set up a self assessment record and created a Unique Reference (UTR) for me because:

1. You contacted us to register for Self Assessment.
2. Your Circumstances mean you need to complete a tax return.

I didnt contact them and havent informed anybody about the lodger as the amount she would pay in those 6 month would be far below the amount required in order for me to contact HMRC about getting that extra income taxed. I believe it is around £7k you can earn from rent from a lodger which is tax free. I wil earn £2,100 in those 6 months, so I wouldnt have thought there was a need to tell anybody.

On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us

If we need you to complete a tax return at any other time we will let you know.

Then goes on to say other generic things.

I'm not sure what to do, do I fill out the form, or is it a letter then send to everyone? I havent ever had this letter myself, and I have at this property since 2019.

Is the form anything to do with the lodger specifically or could it be that I'm getting close to the next tax bracket for the past tax year? 

My income was 38k from my work, however my father has transfered me certain amounts through the year to help me out around my home, for eg when I did my HGV class 2 ttaining, I paid it myself and then a few weeks later my dad would transfer me £2k and he informed me the HGV pass was a present from him.
And we would receive a bonus at work at the end of 2023 which was around £700, and other amounts entering my bank account for example my grandparents would send me some on my birthday...

I'm thinking could the amount that has entered my bank account for the past 12 months be at certain level where HMRC have now decided to send me this self assessment form to get a better understanding on my income??

Any help is much appreciated

Thanks all

You are overthinking this. HMRC do not have access to your banking records. The amount lodged to your bank account cannot be a trigger for the issuing of a notification to file a tax return. 

Additionally the income received from your relatives is not taxable. 

Complete the return to include your employment and rental income and tick box 4 (rent a room relief).

https://assets.publishing.service.gov.uk/media/642ae3e3ddf8ad0013ac0c8b/SA105_2023.pdf

That may be the correct approach but I don't see how the rent a room relief can be relevant for a notice to file received now 🤔


I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

[Deleted User]

Dazed_and_C0nfused said:

[Deleted User] said:

andrew_savva said:

Hi all, I'll try to keep it as sort as possible...

I'm 38 years old, recently seperated from my fiance who used to live in the town house I own in Dunstable.

There are 3 rooms in the house, and seeing that I was alone in a 3 story property, I thought why not rent one of the rooms out.

I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

A few days ago I received a HMRC self assessment form... it says on the letter they have set up a self assessment record and created a Unique Reference (UTR) for me because:

1. You contacted us to register for Self Assessment.
2. Your Circumstances mean you need to complete a tax return.

I didnt contact them and havent informed anybody about the lodger as the amount she would pay in those 6 month would be far below the amount required in order for me to contact HMRC about getting that extra income taxed. I believe it is around £7k you can earn from rent from a lodger which is tax free. I wil earn £2,100 in those 6 months, so I wouldnt have thought there was a need to tell anybody.

On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us

If we need you to complete a tax return at any other time we will let you know.

Then goes on to say other generic things.

I'm not sure what to do, do I fill out the form, or is it a letter then send to everyone? I havent ever had this letter myself, and I have at this property since 2019.

Is the form anything to do with the lodger specifically or could it be that I'm getting close to the next tax bracket for the past tax year? 

My income was 38k from my work, however my father has transfered me certain amounts through the year to help me out around my home, for eg when I did my HGV class 2 ttaining, I paid it myself and then a few weeks later my dad would transfer me £2k and he informed me the HGV pass was a present from him.
And we would receive a bonus at work at the end of 2023 which was around £700, and other amounts entering my bank account for example my grandparents would send me some on my birthday...

I'm thinking could the amount that has entered my bank account for the past 12 months be at certain level where HMRC have now decided to send me this self assessment form to get a better understanding on my income??

Any help is much appreciated

Thanks all

You are overthinking this. HMRC do not have access to your banking records. The amount lodged to your bank account cannot be a trigger for the issuing of a notification to file a tax return. 

Additionally the income received from your relatives is not taxable. 

Complete the return to include your employment and rental income and tick box 4 (rent a room relief).

https://assets.publishing.service.gov.uk/media/642ae3e3ddf8ad0013ac0c8b/SA105_2023.pdf

That may be the correct approach but I don't see how the rent a room relief can be relevant for a notice to file received now 🤔


I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

Your post crossed with mine. I don’t think that the op has been asked to prepare a return - simply notified that a record has been set up. 

The same thing happened to me when I started to receive a taxable benefit. A notice to file was sent shortly after the new tax year started. 

(This is despite the fact that I am an agent and have filed returns since self-assessment began)

‘On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us’

Dazed_and_C0nfused

[Deleted User] said:

Dazed_and_C0nfused said:

[Deleted User] said:

andrew_savva said:

Hi all, I'll try to keep it as sort as possible...

I'm 38 years old, recently seperated from my fiance who used to live in the town house I own in Dunstable.

There are 3 rooms in the house, and seeing that I was alone in a 3 story property, I thought why not rent one of the rooms out.

I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

A few days ago I received a HMRC self assessment form... it says on the letter they have set up a self assessment record and created a Unique Reference (UTR) for me because:

1. You contacted us to register for Self Assessment.
2. Your Circumstances mean you need to complete a tax return.

I didnt contact them and havent informed anybody about the lodger as the amount she would pay in those 6 month would be far below the amount required in order for me to contact HMRC about getting that extra income taxed. I believe it is around £7k you can earn from rent from a lodger which is tax free. I wil earn £2,100 in those 6 months, so I wouldnt have thought there was a need to tell anybody.

On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us

If we need you to complete a tax return at any other time we will let you know.

Then goes on to say other generic things.

I'm not sure what to do, do I fill out the form, or is it a letter then send to everyone? I havent ever had this letter myself, and I have at this property since 2019.

Is the form anything to do with the lodger specifically or could it be that I'm getting close to the next tax bracket for the past tax year? 

My income was 38k from my work, however my father has transfered me certain amounts through the year to help me out around my home, for eg when I did my HGV class 2 ttaining, I paid it myself and then a few weeks later my dad would transfer me £2k and he informed me the HGV pass was a present from him.
And we would receive a bonus at work at the end of 2023 which was around £700, and other amounts entering my bank account for example my grandparents would send me some on my birthday...

I'm thinking could the amount that has entered my bank account for the past 12 months be at certain level where HMRC have now decided to send me this self assessment form to get a better understanding on my income??

Any help is much appreciated

Thanks all

You are overthinking this. HMRC do not have access to your banking records. The amount lodged to your bank account cannot be a trigger for the issuing of a notification to file a tax return. 

Additionally the income received from your relatives is not taxable. 

Complete the return to include your employment and rental income and tick box 4 (rent a room relief).

https://assets.publishing.service.gov.uk/media/642ae3e3ddf8ad0013ac0c8b/SA105_2023.pdf

That may be the correct approach but I don't see how the rent a room relief can be relevant for a notice to file received now 🤔


I found a lodger on spareroom and they moved in on a short stay agreement.

The lodger and I have an agreement for a 6 month stay.

She will transfer me £350 directly on the 15th of each month, this began on the 15th of Feb 2024 and will last until August 2024.

Your post crossed with mine. I don’t think that the op has been asked to prepare a return - simply notified that a record has been set up. 

The same thing happened to me when I started to receive a taxable benefit. A notice to file was set shortly after the new tax year started. 

‘On the letter is says also:

What you can expect next
We'll normally contact you after April 5th each year to tell you:
To Complete a self assessment return and for which tax year
When you need to send that completed returns to us’

Yes, I was thinking about this comment from the op but reading it all again I can see what you mean.

A few days ago I received a HMRC self assessment form

[Deleted User]

Yes, Dazed and Confused. I can see what you mean!

Albermarle

OP,
Normally HMRC prefer you NOT to fill in self assessment if possible.
You might have to call them to clear it up. If you do call at 08.00 as you are more likely to get through.

andrew_savva

Okay perfect thank u everyone


I spoke to my neighbour, she informed me she had received the exact same letter also. Does this change anything?

[Deleted User]

andrew_savva said:

Okay perfect thank u everyone


I spoke to my neighbour, she informed me she had received the exact same letter also. Does this change anything?

Someone anonymously informing HMRC of the existence of lodgers in your street? 

No - it doesn’t change anything! Wait until you hear from HMRC.