Discussion
A few threads on the go here already I see which has me thinking I need to sort my affairs out as well!
Moved in with my fiancé late April 2018 and rented my old place out as it seemed the wise thing to do.
It's now time to submit my tax return and I wondered if there were any PH recommendations ie fixed cost service for a pretty basic return, not comfortable doing my own this time and have a lot of other things going on at present.
Also need some advice on whether to keep it or get out with some remortgage ideas.
Would I need a financial advisor or accountant?
Bit dumb in the respect as I didn't really plan on having a property let.
Some of the risk involved it being a older property that will need some money spending on it in the coming years doesn't sit well with me but don't want to look a gift horse in the mouth by wimping out currently have two family members who want it if I sell but don't think they know the landlord responsibilities or tax burdens.
Moved in with my fiancé late April 2018 and rented my old place out as it seemed the wise thing to do.
It's now time to submit my tax return and I wondered if there were any PH recommendations ie fixed cost service for a pretty basic return, not comfortable doing my own this time and have a lot of other things going on at present.
Also need some advice on whether to keep it or get out with some remortgage ideas.
Would I need a financial advisor or accountant?
Bit dumb in the respect as I didn't really plan on having a property let.
Some of the risk involved it being a older property that will need some money spending on it in the coming years doesn't sit well with me but don't want to look a gift horse in the mouth by wimping out currently have two family members who want it if I sell but don't think they know the landlord responsibilities or tax burdens.
98elise said:
Is very very simple to do on your tax return.
All you need is totals for rent received, mortgage payments, repairs. Insurance, agency fee's etc.
I can't remember the actual boxes but it's along the lines of the above headings.
It really is that simple.
It's not actually that simple for the reason I've highlightedAll you need is totals for rent received, mortgage payments, repairs. Insurance, agency fee's etc.
I can't remember the actual boxes but it's along the lines of the above headings.
It really is that simple.
So said:
98elise said:
Is very very simple to do on your tax return.
All you need is totals for rent received, mortgage payments, repairs. Insurance, agency fee's etc.
I can't remember the actual boxes but it's along the lines of the above headings.
It really is that simple.
It's not actually that simple for the reason I've highlightedAll you need is totals for rent received, mortgage payments, repairs. Insurance, agency fee's etc.
I can't remember the actual boxes but it's along the lines of the above headings.
It really is that simple.
Condi said:
Are you PAYE?
If so, then many people forget to submit one at all.
Not advocating it, but it happens.
Condi it would seem is correct. I am PAYE and have done my self assessment for property every year I've had rented property. But I work with quite a few who don't. And have seemingly got away with it for, in some cases that I'm aware of 15 years plus. Many years ago I told them they were going to get stung. But I'm actually now begining to think they really won't.If so, then many people forget to submit one at all.
Not advocating it, but it happens.
I don't know or care how the system works. I just presumed they would flag up on a land registry/council tax type system but it would seem these systems either don't exist, don't work, or nobody really cares.
Either way I fill in my return and sleep sound which works well for me. But everyone has different attitudes to risk, and nobody likes paying tax.
Killer2005 said:
Happens quite a lot too.
Also whats happening now, with BTL applications, is that lenders are no longer just asking for bank statements for proof of rental income........some are now requesting Tax Returns to evidence declared BTL income.........and where it says nil = decline.Edited by Sarnie on Sunday 17th November 23:17
Sarnie said:
Killer2005 said:
Happens quite a lot too.
Also whats happening now, with BTL applications, is that lenders are no longer just asking for bank statements for proof of rental income........some are now requesting Tax Returns to evidence declared BTL income.........and where it says nil = decline.Edited by Sarnie on Sunday 17th November 23:17
Wow. That's interesting. it always occured to me strange that lenders would go to the extreme of affordability checks, which in my opinion are easyily falsified and don't give any real detail to the profitability of a btl. Where's the tax return shows much more. I've never heard of them asking but now you mention it, it makes a lot of sense.
What happens when a landlord starts getting denied. I get the impression, once say a decade into btl, it's then a very risky business filing a tax return.
What happens when a landlord starts getting denied. I get the impression, once say a decade into btl, it's then a very risky business filing a tax return.
rufusgti said:
Condi said:
Are you PAYE?
If so, then many people forget to submit one at all.
Not advocating it, but it happens.
Condi it would seem is correct. I am PAYE and have done my self assessment for property every year I've had rented property. But I work with quite a few who don't. And have seemingly got away with it for, in some cases that I'm aware of 15 years plus. Many years ago I told them they were going to get stung. But I'm actually now begining to think they really won't.If so, then many people forget to submit one at all.
Not advocating it, but it happens.
I don't know or care how the system works. I just presumed they would flag up on a land registry/council tax type system but it would seem these systems either don't exist, don't work, or nobody really cares.
Either way I fill in my return and sleep sound which works well for me. But everyone has different attitudes to risk, and nobody likes paying tax.
TeaNoSugar said:
Surely the sting comes if/when the colleagues you’re referring to come to sell the BTL property? How would they explain the large lump sum incoming funds from selling a property? There would be CGT to pay on that too. That must raise some alarms within HMRC?
You can own a second property and not rent it out, but they would need to declare for CGT (which I believe is done by the conveyancer handling the sale in any case).romeogolf said:
You can own a second property and not rent it out, but they would need to declare for CGT (which I believe is done by the conveyancer handling the sale in any case).
Theoretically, they could move into it for 6-12 months, declare it as their main residence (perhaps whilst tidying up to sell?), & sell with no CGT. I would imagine HMRC might get 'interested' - 'flipping' is not allowed....in theory.......but who knows these days....
https://www.thisismoney.co.uk/money/mortgageshome/... has some recent detail around this
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