Best way to declare a one off incoming payment?
Discussion
I've sort of gone off grid as far as income tax is concerned. Gave up work two years ago to 'live of the land' , haven't paid tax or NI, don't claim any sort of benefit.
Returned to the workforce to work as a part time postie a couple of months ago just to keep a small amount of cash coming in and get my pension entitlement up to the max before I 'retire'. My total income is still below my tax threshold so still not paying tax.
Recently I rented a few acres to a neighbouring business and I need to invoice them for the rent. Under £2000 and I'll still be below the tax threshold. Any way I can do this without having to do a tax return and all that that entails?
Returned to the workforce to work as a part time postie a couple of months ago just to keep a small amount of cash coming in and get my pension entitlement up to the max before I 'retire'. My total income is still below my tax threshold so still not paying tax.
Recently I rented a few acres to a neighbouring business and I need to invoice them for the rent. Under £2000 and I'll still be below the tax threshold. Any way I can do this without having to do a tax return and all that that entails?
brrapp said:
Hard to say, we let the neighbour use it free of charge last year as a stopgap for a couple of months, but he asked if he could pay rent and stay a bit longer. He used it for 3 months last year and 11 this year.
I'll ask the question a different way. When did you start receiving rental income from the tenant - i.e. what month of what year?feef said:
Any income you receive that isn't PAYE, no matter how little, should be declared in a self-assessment. Tt's the HMRC's decision as to whether you liable to pay any income tax, not yours. The tax-thresholds just mean you know how they are making the calculations.
No it's not; tax rates are set by statute. HMRC are merely collectors; they might have an opinion on what they consider the 'right amount' of tax to be, but they are frequently wrong. And even if they tell you what they think is due it is ultimately your responsibility to check, declare and pay the correct tax.deckster said:
feef said:
Any income you receive that isn't PAYE, no matter how little, should be declared in a self-assessment. Tt's the HMRC's decision as to whether you liable to pay any income tax, not yours. The tax-thresholds just mean you know how they are making the calculations.
No it's not; tax rates are set by statute. HMRC are merely collectors; they might have an opinion on what they consider the 'right amount' of tax to be, but they are frequently wrong. And even if they tell you what they think is due it is ultimately your responsibility to check, declare and pay the correct tax.2. Who must send a tax return
You’ll need to send a tax return if, in the last tax year:
...you got £2,500 or more in untaxed income, for example from tips or renting out a property - contact the helpline if it was less than £2,500
okay, so maybe not 'no matter how little',
brrapp said:
I haven't received any rental income yet. I bumped into my neighbour the other day and he asked me to send him an invoice so he could pay me. In truth I'd almost forgotten about it. I don't actually have a business which I could raise an invoice from.
Normally, HMRC expect you to start completing self assessment tax returns as soon as the property starts generating income for you. Once it does, you are supposed to contact HMRC within 30 days telling them that you will need to start submitting self assessment tax returns to cover this and any other income.If you issued an invoice for rent to a tenant today, that means your first self assessment tax year would be tax year 2017/18.
You would need to notify HMRC by 19 January 2018.
HMRC would issue you with a notice to complete a 2017/18 tax return sometime after 6 April 2018.
You would have until 31 January 2019 to submit the tax return.
You would have until 31 January 2019 to pay any tax arising.
rockin said:
N.B. It is likely that OPs rental activities will trigger Capital Gains Tax implications as well.
f
k it, I think I'll tell him just to forget it and owe me a favour or two instead. He's got some nice machinery I can borrow if I need it. I don't need to declare 'favours', do I?brrapp said:
fk it, I think I'll tell him just to forget it and owe me a favour or two instead. He's got some nice machinery I can borrow if I need it. I don't need to declare 'favours', do I?
If you are receiving consideration in kind for the letting of land, then you are generating income from the land which needs to be returned. It may not be cash income but it's income all the same and needs to be returned.k it, I think I'll tell him just to forget it and owe me a favour or two instead. He's got some nice machinery I can borrow if I need it. I don't need to declare 'favours', do I?If you own land and sell it at some point, it is pretty definite that you will need to declare a Capital Gain at the point of disposal.
These are not optional choices.
Eric Mc said:
If you own land and sell it at some point, it is pretty definite that you will need to declare a Capital Gain at the point of disposal.
No plans to sell anything, hopefully be buried here. If my kids decide to sell it after I'm dead , they'll have to work out what to do with my remains.brrapp said:
Eric Mc said:
If you own land and sell it at some point, it is pretty definite that you will need to declare a Capital Gain at the point of disposal.
No plans to sell anything, hopefully be buried here. If my kids decide to sell it after I'm dead , they'll have to work out what to do with my remains.
Eric Mc said:
brrapp said:
Eric Mc said:
If you own land and sell it at some point, it is pretty definite that you will need to declare a Capital Gain at the point of disposal.
No plans to sell anything, hopefully be buried here. If my kids decide to sell it after I'm dead , they'll have to work out what to do with my remains.brrapp said:
fk it, I think I'll tell him just to forget it and owe me a favour or two instead. He's got some nice machinery I can borrow if I need it. I don't need to declare 'favours', do I?
Personally I think you're on the right track. Keep it completely outside the scope of HMRC.k it, I think I'll tell him just to forget it and owe me a favour or two instead. He's got some nice machinery I can borrow if I need it. I don't need to declare 'favours', do I?https://www.ft.com/content/b26a9dfa-3666-11de-af40...
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