tax on buy to let

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  • graham s
    replied
    thanks for your reply found your letter from hmrc interesting thanks. Have not much paper records been trying to remember all tenants i,ve had over the years but this is only from memory. maybe i will have to go thro bank records if i can go back 15 years oh dear.

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  • Ericthelobster
    replied
    More on the HMRC Let Property Campaign for your interest

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  • Ericthelobster
    replied
    Originally posted by graham s View Post
    how would i work all this out from 2002
    Well, if HMRC cotton on, they will certainly work it out for you, if necessary just by wild guesswork in their favour, which will stick if you can't come up with something better. What records do you actually have?

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  • graham s
    replied
    hmm well i bought property in 1999 with my then wife for 48,000 then in 2002 divorced and then rented it out but have had many tenants mostly bad ones. i had one tenant that i had to take to court with a loss of 5,500 rent over the two years and court costs but did have good tenant there for about 2 years who paid rent of 500pm. i did go back to live there in 2010 after another tenant left it in a total mess. my problem being how would i work all this out from 2002 dont know what to do. my current tenant owes me £2,800

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  • TaxationPete
    replied
    You can only claim the interest up to the value of the property when first let. What is a long time. ? What profit have you made. You need to disclose this to HMRC before they uncover you. Regards Peter

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  • JamesHopeful
    replied
    Originally posted by graham s View Post
    yes peter it is a buy to let mortgage but i have another problem i have another property that i am using as my deposit and am re mortgaging it i have been renting out for a long time but i,ve never informed income tax about it. so now i dont know what to do. any help you can give thanks peter
    If you want to get on the right side of the law, you'll need to disclose this to HMRC. Be warned that there may be some penalty to pay, but it might be less than you think....

    You may wish to see the ongoing let property campaign from HMRC:
    https://www.gov.uk/government/public...g-a-disclosure

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  • graham s
    replied
    yes peter it is a buy to let mortgage but i have another problem i have another property that i am using as my deposit and am re mortgaging it i have been renting out for a long time but i,ve never informed income tax about it. so now i dont know what to do. any help you can give thanks peter

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  • TaxationPete
    replied
    Is it a Buy to Let Mortgage you have or a residential mortgage and you have permission form the lender to rent the property out.
    Regards Peter

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  • graham s
    replied
    thanks james yes i have alot to learn. I have been on property hawk and i am making notes from there about all i can claim for even paper and printer ink.. so much to take in, this is a very helpful site . Thanks for the informaition. I did know that only the interest part of my loan is deductible. when i get property i will keep all the bills i will have to pay. eg council tax, gas elec, water, estate fees to let, insur, gas saefty check. see i am learning

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  • TaxationPete
    replied
    "look at property hawk maybe". It's not a maybe it's essential as you have a lot to learn.
    For instance you mention a repayment mortgage, be aware it is only the 'interest' that is deductible.
    You will need to register no matter how much profit you make. The comment about £2,500 only applies to owners with no other income. Regards Peter

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  • graham s
    replied
    thanks james i will look at HMRC website and see how i register for self-assessment and look at propert hawk maybe

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  • JamesHopeful
    replied
    If you are not currently registered for a self-assessment tax return, you'll need to register if your rental profit is more than £2500 in a year. You can do that on the HMRC website. It's very easy.

    Other than that, it'd be a good idea to read a general guide on income tax for landlords as soon as possible. Property Hawk has a good concise one, and this website also has various tax articles although they are a bit diffuse. There is loads more available on the internet though, and some good books are about.

    Leave a comment:


  • graham s
    started a topic tax on buy to let

    tax on buy to let

    hi can anyone help i am buying new house should be done in a few weeks. i need to know how much tax i will have to pay and how i do it.
    i work full time so i pay normal tax on my earnings.
    i will be renting house for £600pm. will have repayent mortgage of £316 for 25yrs
    i wiill doing some work on house myself eg. re-painting and any minor repairs.
    i will get buildings and gas safety done.
    i need your help on this thanks

Latest Activity

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  • Reply to Tax Return - HELP!
    by jpkeates
    I'd include the 12th month.

    While you're correct that the income fell into the 2018/19 tax year, you didn't declare it then, which is could trigger a fine and a penalty.
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    02-07-2020, 08:51 AM
  • Tax Return - HELP!
    by Brian862107
    Does anyone know of any good online tutorials/guides for filling out your self-assessment tax return? I don't know about you's but I hate filling out forms (they always ask you to tick a box to say the information you've put in is correct too!!)!

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  • Reply to Tax Return - HELP!
    by Brian862107
    I've had a look over my rental statements and remembered the reason I have 11 months this tax year and not 12 was that the 1st month rental statement was on the 5th April 2019 (like one day before the 6th April 2019 tax year). I just want to confirm that this is correct or do I need to include the 5th...
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  • Reply to Tax Return - HELP!
    by Brian862107
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    02-07-2020, 06:26 AM
  • Reply to Tax Return - HELP!
    by Jon66
    The electronic self assessment is fairly easy. If you're not doing this I would recommend you get it set up for next time. There are also explanatory notes as you go along. Just done mine, it must be the covid effect! Doesn't normally get done until after Christmas.
    01-07-2020, 23:00 PM
  • Reply to Tax Return - HELP!
    by Gordon999
    Are you preparing the paper tax return SA105 ? The figures declared in each box are for one year .

    So rental income = £5500.( box 20)

    Insurance and rates := ( box 24 )

    Prop Repairs = ( box 25 )

    Prof Fees ( letting agent ) = £660 ( box...
    01-07-2020, 21:38 PM
  • Reply to Tax Return - HELP!
    by jpkeates
    I get an accountant to complete my tax return.
    It costs, but it's an allowable expense and it's worth it just to know that I'm keeping the tax I pay to a minimum.


    You are taxed on your net income (which is rent less expenses - like the management fee and repairs), but you don't...
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  • Returning from oversea landlord taxation
    by LAN45
    Hello,

    I have been living abroad and paied rental income taxes, according to legislation, to HMRC as oversea landlord.

    ue to recent developments I'm moving back to UK looking for a job and would like to understand how to handle paying taxes? I will have no further income for...
    22-06-2020, 12:15 PM
  • Reply to Returning from oversea landlord taxation
    by jpkeates
    When you began your new business you should have told HMRC.
    They would have confirmed how they wanted you to complete your tax return.

    If you get in touch now, they'll confirm what they want you to do.

    Tax returns are based on the tax year, which runs from 6th April to...
    01-07-2020, 16:13 PM
  • Reply to Returning from oversea landlord taxation
    by LAN45
    Thank you. Since I've never done a self assessment when is it due for? In this thread people wrote end of year, is it calendar year 31/12 or fiscal year 01/04? Or something different?...
    28-06-2020, 15:09 PM
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