Any accountants on here? Quick boring tax question

Blumers Bloomers said:
Thanks all appreciated. Best get filling in that self assessment form.

Not one request for free rentals for bluemooners, this place is going to the dogs !
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You don’t declare this tax years income until next years tax return…
 
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Gaudion M said:
You need to do a self assessment. It's easy to do once set up , but setting it up online is a nightmare. I'd suggest you get started ASAP and save all passwords and references numbers etc carefully. First thing you need is a code, one for each of you. You can off set the cost so dig out all the detail and save it somewhere.
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Nooooooooooooooo. Self Assessment is not easy and it takes ten years to get off the fucking thing.
OP. The first question to ask is to the Management Company. Ask them if they tell the tax man. If they do, yes you need to do a self assessment form. If they don't, say fuck all to anybody.
The reason I say self assessment is difficult is you have to list everything, even all the info already declared by PAYE. All your savings have to be declared. All your records have to be kept, in paper form for 5 years. This includes bank statements, receipts the lot. The reason it has to be paper is because if the IR investigate you have to give them all the documents 'in a readable form'. I knew someone that stored everything on a floppy disc. At the time it was state of the art...... 4 years down the line he had to get everything printed out at his expense as even he no longer had the reader.

If you are not running it as a business, do nothing tell no one.
 
Bluemanc100 said:
We have a property in Chester that we rent out. SWMBO completes the HMRC online self assessment forms every year.

We make money after the fees and maintenance are paid and because it’s just over her allowance when her NHS pension is taken into account the tax is pretty low.. ~£300 this time

Pretty easy to do
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@Bluemanc100 Bearing in mind you cannot claim tax relief on any mortgage you may have on the property how does that work out ?
Rent 12 x £600 = £7,200.
Maintenance etc 12 x £100 = £1,200.
Profit £6,000. Your wife's personal allowance is used up by her pension so you have 20% tax on 6k = £1,200.

OK I've made those figures up but unless you have had one off repairs to pay for I can't see £300 bring right.
 
Blue Mist said:
@Bluemanc100 Bearing in mind you cannot claim tax relief on any mortgage you may have on the property how does that work out ?
Rent 12 x £600 = £7,200.
Maintenance etc 12 x £100 = £1,200.
Profit £6,000. Your wife's personal allowance is used up by her pension so you have 20% tax on 6k = £1,200.

OK I've made those figures up but unless you have had one off repairs to pay for I can't see £300 bring right.
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You've assumed it's 100% occupancy...
 
Blue Mist said:
Nooooooooooooooo. Self Assessment is not easy and it takes ten years to get off the fucking thing.
OP. The first question to ask is to the Management Company. Ask them if they tell the tax man. If they do, yes you need to do a self assessment form. If they don't, say fuck all to anybody.
The reason I say self assessment is difficult is you have to list everything, even all the info already declared by PAYE. All your savings have to be declared. All your records have to be kept, in paper form for 5 years. This includes bank statements, receipts the lot. The reason it has to be paper is because if the IR investigate you have to give them all the documents 'in a readable form'. I knew someone that stored everything on a floppy disc. At the time it was state of the art...... 4 years down the line he had to get everything printed out at his expense as even he no longer had the reader.

If you are not running it as a business, do nothing tell no one.
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You don't have to give HMRC everything in paper form!

Self- assesment is only difficult if your income is complicated.

If you want proper advice, speak to a firm of accountants (or sole trader) that deals with personal tax.

I am a qualified accountant but I do not work in practice or have a practicing certificate so I am not technically allowed to give personal tax advice, so I don't.

You definitely need to be careful of taking advice off people on here about accounting matters: it's very obvious how little people who are not suitably trained know.
 
My Mrs has a rental flat.
She keeps good records so Self assessment on line takes an hour once a year.
Nothing gets sent to HMRC other than the on line self assessment form.
Records are obviously kept for years.
It is not difficult at all.
 
Blue Mist said:
@Bluemanc100 Bearing in mind you cannot claim tax relief on any mortgage you may have on the property how does that work out ?
Rent 12 x £600 = £7,200.
Maintenance etc 12 x £100 = £1,200.
Profit £6,000. Your wife's personal allowance is used up by her pension so you have 20% tax on 6k = £1,200.

OK I've made those figures up but unless you have had one off repairs to pay for I can't see £300 bring right.
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The wife’s pension is around 60% of her allowance .. the rest is made up by the profit
 
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