Hi all, I became a landlord in March and have called HMRC to let them know, as it stated on the gov website any income under £2500 you have to let them know. I called and told them I was renting my property and they have send I owe them tax for 2016/2017, which isn't true as I paid more out then than I earned with agents monthly fees, finding tenant fees and mortgage interest. how do I resolve this, do I have to fill in a tax return online and if so, how?
Newbie landlord
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If you made a loss (as you seem to suggest) I STRONGLY suggest you complete a tax return for 2016/17. As then there will be a loss: That you can carry forward to 2017/2018 & pay less tax, offsetting the loss in 16/17 against any profit on 17/18. (Or don't bother & pay tax-man more... )
- and then you'll find doing the return for 207/2018 not such a shock as you've had a small dabble.
But a book on property tax: It will save you more than it costs....I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...
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When you told HMRC you were letting your property, I would have expected them to tell you to complete a Self Assessment tax return or changed your tax code (if you are employed) to collect what they think you owe.
It would be really odd of HMRC to simply advise that you owe then "some" tax.
I use an accountant to complete my tax return, which is a further allowable expense.When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).
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that's something only you can answer (and online is only available to you if you are based in the UK by the way). Bear in mind that the deadline for filing is different though. It's the end of October for paper but the end of Jan 2018 for online.
To set up online you'll need to get a Government Gateway ID which means waiting for them to send you a PIN in the post after you've registered.
It's important to understand that HMRC will calculate your tax on what you report. That means that if you are given a tax demand when you think you shouldn't get one, it may be that you didn't do your figures right. Best to get it right first time than have to negotiate an amendment with them.
If you complete an SA100, you'll also need to complete an SA105 for property. The notes are usually pretty clear and unless your property situation is complex, it is pretty straightforward.
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I wanted to buy a property under LTD. I would use this property as my main residence.
My intention would be to live in this property. I would not rent it out in long term or at least for 10 years.
I would be the main and the only director of this company.
What are the tax implications?...-
Channel: Tax Questions
16-02-2019, 16:52 PM -
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It sounds a bad idea. You'd be caught by both the 3% SDLT surcharge and, when you sell, corporation tax on any capital gain. In addition, I would guess it'd be difficult getting a mainstream mortgage for this arrangement (you may need to go to a specialist lender which would charge rather higher interest...
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Channel: Tax Questions
17-02-2019, 17:41 PM -
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I would say benefit in kind at the full market rent.
It will probably also ring alarm bells at HMRC, so your tax position would need to be watertight.-
Channel: Tax Questions
17-02-2019, 10:41 AM -
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Not much of that makes any sense.
I'd talk to an accountant.
When you own the property you live in, there's neither income or expense, so tax isn't, generally, relevant.
Owning the property you live in via a company will be next to impossible if you want a mortgage.-
Channel: Tax Questions
17-02-2019, 10:26 AM -
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Hi All
I am selling a BTL which is currently in my name only. In order to reduce the CGT would I need to transfer the title to include my wife or would a deed of trust suffice?-
Channel: Tax Questions
08-02-2019, 09:32 AM -
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I am no expert - but I think that if HMRC believe you have transferred the property to avoid CGT they can charge the full amount anyway. HMRC always want their pound of flesh....
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Channel: Tax Questions
13-02-2019, 12:00 PM -
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Hello,
I am the sole owner of a property, which is mortgaged. As a higher-rate tax payer I wish to transfer the beneficial interest of this to my wife, who is currently unemployed (full time mum). This will take effect from April 6th 2019.
Beneficial Interest
Do I need...-
Channel: Tax Questions
14-01-2019, 09:56 AM -
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Once transferred you wife will need to tell HMRC she is in receipt of income from renting a property out and fill in a self assessment form even if there is no tax to pay.
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Channel: Tax Questions
13-02-2019, 11:26 AM -
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I know variations on this question have been asked before, so will keep it brief.
We jointly own a rental. My share of income needs declaring on tax return, no question.
But my wife has no other income.
Does she need to declare it, as it's well below her allowance. I've read that anything...-
Channel: Tax Questions
12-02-2019, 18:38 PM -
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Reply to Wife's tax liabilityYour wife should tell HMRC about her new source of income.
They will decide how she needs to report her income - it may be a self assessment return or it may be less formal.-
Channel: Tax Questions
13-02-2019, 09:41 AM -
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