Self assessment and tenants on univ credit

flopsy1973

Doing my first self assessment this year and I have tenants in house I own they claim universal credit. Do I need to include this will the fact they are claiming UC means hmrc will check? 

tacpot12

You need to include all the rental income and allowable expenses in your tax return. HMRC are starting to have regular access to UK bank accounts and will be using the data to check whether people are declaring all their income.  

anselld

You need to declare your own income which would include any UC if it is paid directly to you.  How the tenants are funding their rent is not relevant to your self assessment.

poseidon1

flopsy1973 said:

Doing my first self assessment this year and I have tenants in house I own they claim universal credit. Do I need to include this will the fact they are claiming UC means hmrc will check? 

Just to be clear are these tenants living in a separate property from the one you live in  ie they are not living in your home with you? 

If so, you evidently have a lot to learn about the fiscal and legislative aspects of being a landlord and could benefit from self tutoring  from sources such as the following:

https://www.worldofbooks.com/en-gb/products/landlord-s-handbook-book-leon-hopkins-9780857190185?sku=GOR005037594&gad_source=1&gad_campaignid=17415896148&gbraid=0AAAAADZzAICkQIQlc-MeDdl9mz_J8eIbt&gclid=CjwKCAjwobnGBhBNEiwAu2mpFI2dsfIBBhWtyjIc_zfK91umllyR9cJeBlWjTsZeaGsZi4NlQWeUMRoCZh4QAvD_BwE

The complexities of the annual record keeping and profit and loss computations inherent in self assessing as a landlord are not inconsiderable. 

 In a previous post last year on what best to do with £400k cash, you indicated a preference to avoid investments which would place a self assessment burden on you which you wish to avoid.

 Yet we now learn you are already subject to the rigours of self assessment via an investment property you failed to mention in the investment post.

Your lack of knowledge in the prior investment post,  together with the current query suggests you might be best advised to delegate preparation of your first tax return to a tax accountant, and via their expertise gradually build up your own knowledge and experience before embarking on completing future tax returns by yourself. HMRC can sometimes be unforgiving of a tax payer submitting what they consider to be a negligently completed return.

As a general observation, consulting the various different MSE forums in the patchwork fashion you have chosen without presenting a coherent picture of your financial circumstances , may end up eliciting only partially correct responses to your potential detriment. Not everyone are inclined to review an OP's past posts to try and join up the dots.

Grumpy_chap

flopsy1973 said:

Doing my first self assessment this year and I have tenants in house I own they claim universal credit. Do I need to include this will the fact they are claiming UC means hmrc will check? 

You sound like you need to engage the services of an Accountant.
If I read your post correctly, you are not in receipt of UC yourself, but it is your Tenants that receive UC.  How the Tenants receive their income is irrelevant to your tax situation and reporting required.
All income received from the BTL needs to be declared on the SA105 supplementary sheets of the tax return.  There are some permitted deductions that can reduce the resulting income tax liability.  An Accountant will be able to assist as the rules are not all simple.
You also need to keep good long term records as there will be a CGT liability arise as and when the BTL is sold.

ReadySteadyPop

tacpot12 said:

You need to include all the rental income and allowable expenses in your tax return. HMRC are starting to have regular access to UK bank accounts and will be using the data to check whether people are declaring all their income.  

There is a process involved though, they can`t just access bank accounts?

Dazed_and_C0nfused

anselld said:

You need to declare your own income which would include any UC if it is paid directly to you.  How the tenants are funding their rent is not relevant to your self assessment.

Can you confirm which box on a Self Assessment return you need to declare the non taxable benefit that is Universal Credit 🤔

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

ReadySteadyPop

SonnyLumiere said:

flopsy1973 said:

So will the fact tenants are on UC mean hmrc will know that I have other income I need to declare ?

This site does not provide advice on tax avoidance. Reported.

Wrong word I think?

anselld

Dazed_and_C0nfused said:

anselld said:

You need to declare your own income which would include any UC if it is paid directly to you.  How the tenants are funding their rent is not relevant to your self assessment.

Can you confirm which box on a Self Assessment return you need to declare the non taxable benefit that is Universal Credit 🤔

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

I was refering to the situation where the Tenant's UC is paid directly to the Landlord, in which case it is still rental income as far as the Landlord is concerned.  It is clear from the OP that the Tenant is claiming UC and the OP is the Landlord so it is a possibility.

Grumpy_chap

anselld said:

I was refering to the situation where the Tenant's UC is paid directly to the Landlord,

Such situations are very rare now.