Newbie landlord

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    Newbie landlord

    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?

    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...


      Thanks for the quick reply
      do I register for the SA1 fill in and send form online?


        Do you recommend any books?


          Some people swear by the Taxcafe book


            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).


              Surely you were only renting the property out for about 3 weeks in the 2016/2017 tax year! Call them back and ask for a self assessment form, fill it in and they will send you an amendment.


                Is it easier to fill in a self assessment form online or in print?


                  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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