Tax Return or Letter?

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    Tax Return or Letter?

    Hi

    I remember there being a rental income limit where you don't need to actually complete a property tax return. Instead of completing the tax return you can write a letter to the tax office declaring the income and net profit. Is this still in practise?

    Also, if you do have to complete the tax return, does anyone know what the limit is whereby you can just total up all your expenditure as opposed to splitting it out?

    This info is for a friend who is just about to embark as a new landlord.

    Many thanks.

    #2
    When they contact HMRC to tell them they're starting a new business, HMRC will tell them how they want it reported.
    If it's trivial, they may collect the tax through PAYE and allow a simple adjustment at the end of the year, but normally they seem to default to asking for a full return.

    That was true a few years ago though and a couple of people have posted more recently that they've been asked to pay through PAYE.
    I don't see much incentive for HMRC not to want a proper return though.
    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


      #3
      Originally posted by jpkeates View Post

      That was true a few years ago though and a couple of people have posted more recently that they've been asked to pay through PAYE.
      I don't see much incentive for HMRC not to want a proper return though.
      Yes, I agree with that statement.

      Comment


        #4
        Hi Claymore
        Good to see you back posting on the forum.

        i cannot comment on whether that form of reporting to HMRC is permitted given that much reporting is in the main electronic, I feel that if allowed by HMRC the same would not be the case so far as any lender is concerned given the obligatory requirements of Self Assessments,Tax Overviews and Tax Calculations to demonstrate transparency of monies originating from Land & Property.
        An Accountant or indeed HMRC are suggested asa means ofclarification.

        Comment


          #5
          Hi Loanarranger - how are you doing? Its good to be back again :-)

          Comment


            #6
            Life is good , I am feeling like an agony aunt with clients seeking guidance on the implications linked to their property portfolios, no complaints as it demonstrates their support even if it isn’t income generating.

            I am glad you are back on the forum I missed our positive exchanges.

            Comment


              #7
              Ha, bet you are. Lots of worried people.

              I haven't been totally absent, I have dipped in to read your threads quite a few times. Love your updates. Take care.

              Comment

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