Registering for self assessment – help needed for a newbie landlord

Registering for self assessment – help needed for a newbie landlord

9:48 AM, 2nd October 2014, About 10 years ago 25

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Would appreciate any help the forum could give me on the following …

After searching google and searching your forums I am still none the wiser will regards to self assessment. Registering for self assessment - help needed for a newbie landlord

My wife and I bought our first rental property in January this year and first rented it out in March, we always knew we would need to register for income tax from our rental income but now the time has come are unsure how to.

The HMRC self assessment website does not seem to specifically mention registering as a landlord, so what catergory do we/ I register under?

Also do we both have to register as the property is jointly owned? In which case do we have to split all income and expenditure 50/50

Your help would be greatly appreciated.

Many thanks

Damian


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Jason Holden

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15:29 PM, 27th November 2014, About 10 years ago

Here is HMRC guidance:
http://www.hmrc.gov.uk/agents/toolkits/property-rental.pdf

Accountants really are worth the money you know 😉

Jason

Michael Barnes

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15:45 PM, 27th November 2014, About 10 years ago

Reply to the comment left by "Jessie Jones" at "27/11/2014 - 15:09":

My advice would be "phone your tax office, ask to speak to a tax inspector, and ask him/her"; then post the answer back here.

In my unquallified opinion:
a) All except 1 and 3 are clearly to do with the purchase of the property and therefore are Capital expenditure.
b) 1 and 3 are to do with financing the purchase, and are probably revenue.

Richard Marshall

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22:02 PM, 6th January 2016, About 9 years ago

Thank you for the thread, very interesting. Quick question. Myself and my wife jointly purchased a property in April 2014, on a buy to let mortgage, and immediately replaced the kitchen and renovated to add a conservatory.

The renovations took a year (long story!)

I am currently submitting my 2014-15 self assessment. We did not rent out the property until April 2015 onwards. I am right in thinking that we can carry losses from 2014-15 forward to tax year 2015-16, at which point both myself and my wife will need to submit a SA form. Is that correct? Or must she complete SA this tax year too? Officially, we didn't engage a management company or find a tenant until April 2015.

Your advice would be appeciated.

Michael Barnes

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11:25 AM, 7th January 2016, About 9 years ago

Reply to the comment left by "Richard Marshall" at "06/01/2016 - 22:02":

If this is your first property then my understanding is that your business started on the day the first tenants took possession; all costs incurred prior to that date are treated for tax purposes as though they were incurred on that date.

Therefore
1. if the letting occurred in 2015-16 tax year, then nothing goes in the tax return for 2014-15.
2. if the letting occurred in 2014-15 tax year, then everything goes in your tax return for 2014-15.

However, if you already have property income, then it is part of your property business and your share of the expenses go into 2014-15 return.

Richard Marshall

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18:04 PM, 29th March 2016, About 9 years ago

Thank you very much Michael, sorry for the delayed reply!

I appreciate you time replying.

Richard

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