Do I need to submit a tax return?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Do I need to submit a tax return?

    Hi guys, I have a rental property that has a tax liability associated with it but HMRC have not asked me to submit a tax return this year. Should I submit one regardless?
    Thanks,
    RT

    #2
    If you don't want to be fined, yes.

    If you wish to contribute correctly financially to our dear country, yes.

    If you wish to carry forward losses and save tax in future years, yes.

    If you wish to be able to prove income (eg for a mortgage) yes.

    Etc etc etc etc
    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...

    Comment


      #3
      You should have told HMRC about the new source of income and they would have told you how they want you to report the income.
      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).

      Comment


        #4
        jpkeates,

        There is no new source of income. That's the point - nothing has changed but I seem to have fallen out of the system. Is it my legal duty to put myself back into it? The answer to that seems to be 'yes'.

        Comment


          #5
          Which was the last year you submitted a self-assessment?

          I get reminders from HMRC. All organisations & people male mistakes, perhaps they have with not reminding you (or it goes in your spam bucket)
          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...

          Comment


            #6
            You should send a letter to HMRC ( quoting past tax ref ) to inform your rental property address, gross rental income and expenses claimed and let them decide if they require a tax return from you.

            Comment


              #7
              Originally posted by rob77 View Post
              jpkeates,

              There is no new source of income. That's the point - nothing has changed but I seem to have fallen out of the system. Is it my legal duty to put myself back into it? The answer to that seems to be 'yes'.
              That sounds odd.

              Do you mean that previously you've received a request from HMRC for a tax return and that hasn't happened this year?

              I'd call and ask, because the deadline is really close.

              Unless an alternative mechanism has been agreed, you need to tell HMRC about the income somehow (but a tax return isn't the only way, it's simply the most common).

              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).

              Comment


                #8
                Okay many thanks guys - I'll get in touch with them first thing then. RT

                Comment

                Latest Activity

                Collapse

                • Reply to Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  Hi Andrew
                  First of all I've got an initial appointment to speak to an accountant on Friday!

                  Can I just check where you write ' ...at death 1/6th of the value of the whole would have been deemed to pass to you for CGT purposes as the survivors would share the whole'.

                  Does...
                  08-12-2021, 18:02 PM
                • Reply to Caught out by changes to Capital Gains Tax
                  by jpkeates
                  Even if probate wasn't mandatory, it would probably have been useful.
                  08-12-2021, 13:44 PM
                • Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

                  1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
                  06-12-2021, 13:51 PM
                • Reply to Caught out by changes to Capital Gains Tax
                  by AndrewDod
                  Yes this would be the case if it was jointly owned (not as tenants in common). The situation would be that at death 1/6th of the value of the whole would have been deemed to pass to you (for CGT purposes), as the survivors would share the whole.

                  So for the 3 periods you would be taken...
                  08-12-2021, 12:51 PM
                • Reply to Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  jpkeates
                  There was no estate as such, property jointly owned - they were both retired at time of purchase living on small pensions, hence I bought with them so they could stay in the home they'd been renting from council from early 1950s to March 1982 at time of purchase. And I paid for the initial...
                  08-12-2021, 10:50 AM
                • Reply to Caught out by changes to Capital Gains Tax
                  by jpkeates
                  I don't know the historic thresholds, but it's bizarre that there's no probate for both of your parents, their estate has to be tiny for that to be possible nowadays.
                  It's probably too late for HMRC to do anything about that, but that process sets the values for CGT calculations later on, so it's...
                  08-12-2021, 10:28 AM
                • Reply to Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  Morning Andrew
                  Thanks for your response early this morning and clarifying I have to make three separate calculations [the split wasn't clear on the CGT calculator].
                  I understand the query on the value but this is an ex council house on a council estate [I feel I have to defend it here as...
                  08-12-2021, 08:45 AM
                • Reply to Caught out by changes to Capital Gains Tax
                  by AndrewDod
                  As gordon indicates you need to consider it in three entirely separate parts, each have their own gain and calculation --

                  The part YOU owned before Death 1
                  The part YOU owned between Death 1 and Death 2
                  The part you owned after Death 2

                  Based on the values you give...
                  08-12-2021, 05:52 AM
                • Reply to Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  Thank you Gordon, didn't see your response this afternoon. I will look at this with fresh eyes tomorrow as it's late now.
                  I've put some figures in my reply to a post just now but answers below to your questions.

                  a] £80k Jan 2021 sale price.
                  b] As property purchased before...
                  08-12-2021, 00:55 AM
                • Reply to Caught out by changes to Capital Gains Tax
                  by reluctantlandlord1976
                  Andrew, apologies only just seen your post [was it awaiting approval did you say?] answers are:

                  Purchased March 1982 as joint tenancy - so equal split of 33 1/3% each party
                  Parent 2 died September 2007 - as joint tenancy I inherited their share - so at this point I own 100% of property...
                  08-12-2021, 00:41 AM
                Working...
                X