Self Assesment form and rental income

blackiejones77

Hello, filling one of these out for the first time as I have a full time job with an employer and rent a property out. Is there anywhere on the form where you deduct your personal tax allowance of  £12, 500 from your yearly salary or does the HMRC system automatically account for this when it does the final calculation of tax due? Also, when filling in property income details is it ok just to populate the income field and not bother with the optional expenses fields?

Dazed_and_C0nfused

You don't add your Personal Allowance anywhere, it will form part of the calculation when you get to that stage.

[Deleted User]

blackiejones77 said:

Hello, filling one of these out for the first time as I have a full time job with an employer and rent a property out. Is there anywhere on the form where you deduct your personal tax allowance of  £12, 500 from your yearly salary or does the HMRC system automatically account for this when it does the final calculation of tax due? Also, when filling in property income details is it ok just to populate the income field and not bother with the optional expenses fields?

On the second part - surely you would wish to claim the property allowance of £1000?

Or are you asking if you can enter the net ‘profit’ after expenses in the income field which would not be appropriate at all?


https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

sheramber

blackiejones77 said:

Hello, filling one of these out for the first time as I have a full time job with an employer and rent a property out. Is there anywhere on the form where you deduct your personal tax allowance of  £12, 500 from your yearly salary or does the HMRC system automatically account for this when it does the final calculation of tax due? Also, when filling in property income details is it ok just to populate the income field and not bother with the optional expenses fields?

Do you have expenses to claim?You can claim the property allowance of £1000 or, if your expenses are more than £1000 then you would claim your expenses amount instead of the property allowance.

You cannot claim both.

You claim the property allowance in the appropriate box on the return.

You should show your expenses amount in the relevant boxes  if claiming expenses. 

If you are not sure what to do the check the notes for the property income pages.

blackiejones77

No, I've worked out everything and put the income from the property down after subtracting all the costs as per instructions...it then takes you to the expenses/costs section,. What I meant was were you supposed to put down your profit before taking off the costs then enter the various expenses/costs to show how you get to the income figure after subtracting all costs (ground rents, mgmt fees, repairs and maintenance etc)?  i.e do they need the figures in those expenses/costs section as evidence as to how you get to the final income figure you give?

Bookworm105

blackiejones77 said:

No, I've worked out everything and put the income from the property down after subtracting all the costs as per instructions...it then takes you to the expenses/costs section,. What I meant was were you supposed to put down your profit before taking off the costs then enter the various expenses/costs to show how you get to the income figure after subtracting all costs (ground rents, mgmt fees, repairs and maintenance etc)?  i.e do they need the figures in those expenses/costs section as evidence as to how you get to the final income figure you give?

you are required to put your gross INCOME then to put your gross COSTS
(as explained on the form you do not need to itemise each cost if the total is below the stated value, just put a single total cost

your profit is the difference between the 2 obviously. Do not put down profit, separately put income and costs 

sounds like you need to start again from scratch

[Deleted User]

blackiejones77 said:

No, I've worked out everything and put the income from the property down after subtracting all the costs as per instructions...it then takes you to the expenses/costs section,. What I meant was were you supposed to put down your profit before taking off the costs then enter the various expenses/costs to show how you get to the income figure after subtracting all costs (ground rents, mgmt fees, repairs and maintenance etc)?  i.e do they need the figures in those expenses/costs section as evidence as to how you get to the final income figure you give?

No - you enter the total income BEFORE all expenses in the online equivalent of box 20 below and then the individual expenses in the following boxes. The resultant profit will be calculated automatically. 

https://assets.publishing.service.gov.uk/media/65f9777e703c42001a58ef11/SA105_2024.pdf

Guidance notes here:

https://assets.publishing.service.gov.uk/media/65f97803703c42001a58ef12/SA105_Notes_2024.pdf

blackiejones77

Are you able to claim mortgage interest payments then? I thought you could but cannot see on the form where this section would be?

sheramber

blackiejones77 said:

Are you able to claim mortgage interest payments then? I thought you could but cannot see on the form where this section would be?

Box 7 on page 1 - Loan and finance costs.

You  get a tax credit at 20% of the fnance costs

Bookworm105

blackiejones77 said:

Are you able to claim mortgage interest payments then? I thought you could but cannot see on the form where this section would be?

sheramber said:

blackiejones77 said:

Are you able to claim mortgage interest payments then? I thought you could but cannot see on the form where this section would be?

Box 7 on page 1 - Loan and finance costs.

You  get a tax credit at 20% of the fnance costs

make sure you do not double claim
the costs you declare in the cost box EXCLUDES mortgage  
the mortgage cost goes separately where sheramber states: the finance costs box (and is the interest only, not including any element of capital repayment)