Declaring rental income in Scotland

Declaring rental income in Scotland

Author
Discussion

RichTT

Original Poster:

3,071 posts

171 months

Wednesday 28th January 2015
quotequote all
With all this talk of tax returns etc. I've been having another look at my rental property. I'm pretty much sure I know the answer but I guess I have to ask the obvious questions.

On 15/03/2013 we registered my wifes old flat for rental with the Landlord Registration. This property was in originally in massive negative equity and on a Northern Rock Interest Only mortgage when we met. I transferred about £30k into the property from our own house to get us to the 70% mortgage level to negotiate a buy to let mortgage with our lender (Natwest).

From this point on we've been renting it out through a letting agent. I've been keeping a wee spreadsheet of my own just to tally everything up. The property is in joint ownership. My wife doesn't work and doesn't 'earn' anything beyond some cash I transfer to her individual account each month.

Our income from the property for 2013/2014 was £6k, minus deductibles it ends up at £572.88 profit split between the two of us. I was under the (false) assumption that below the £2.5k profit margin I didn't need to notify anyone. However I would appear to be in error. I take it that even though I'm now liable for a fine due to late submission for 13/14 I should go and get the P810 for and submit it as soon as possible?

What should I do for my wife? In theory she would get half the profit from the year, does she need to set up a self assessment account?

Also, whilst on the subject. Since my wife doesn't work is there any way to benefit from this situation?

RichTT

Original Poster:

3,071 posts

171 months

Thursday 29th January 2015
quotequote all
Well I've registered for my UTP. Some issues it seems with them allowing my wife to register. The Gov site is a real mess. Sending you links to archived articles and forms, or not finding the forms at the end of the links at all.

Still not sure whether it's worth finding an accountant to keep things in check. I'm also at the income level where apparently i need to submit self assessment even though i'm PAYE which I didn't know either.