Do I Need To Let HMRC Know About The Property I Let Out?
Yes. you most definitely do ...
POSTED BY HELEN BEAUMONT ON 19/01/2018 @ 8:00AM
I've had a number of enquiries recently about tax changes from HMRC which are going to affect rental property owners. The most asked question is, ''Do I need to let HMRC know about the property I let out?''
If you're wondering if you need to tell HMRC about your rental property then then answer is yes!
copyright: visivasnc / 123rf stock photo (licensee)
It's a simple scenario. You have been renting out a second property for some time, but have not declared the income to HMRC because you believed that you are making a loss or the income is clearly within your allowance.
HMRC's guidance now states that you must contact HMRC, even if your property income is less than £2,500 and you must report on a self-assessment tax return if it is:
£2,500 to £9,999 after allowable expenses
£10,000 or more before allowable expenses
If you don't usually send a tax return, you need to register by the 5th October following the tax year you had rental income.
Tax relief on mortgage interest is also changing so this may affect the profit you make on your rental property (see my blog post: Property Tax: loan interest relief restrictions).
Relief can be claimed for expenses incurred and you can find out more about that in my blog post entitled Buy To Let Tax Relief On Repairs And Replacements.
HMRC are now using information sourced from banks, the land registry and lettings agents to discover who owns rental properties. Don't fall foul of legislation by trying to hide the property you let out and not disclosing it to HMRC.
"HMRC continues to crack down on buy-to-let landlords!"
If you're wondering if you need to let HMRC know about your rental property, do call me on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!
More about Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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