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#1 07-05-06 20:24:27

Trumper
Verified Member
From: South west
Registered: 11-07-05
Posts: 251

tax

renting out my house.  Does anyone know how to go about the tax thing? Do I  ring up Mr taxman and tell him. Any advice please?


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07-05-06 20:24:27

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Re: tax



#2 07-05-06 21:19:45

catman
Verified Member
From: Keighley
Registered: 31-01-05
Posts: 30

Re: tax

Hi

Yes do tell him.  You need to notify any change in chargeability sooner rather than later.

If you have only just started to rent then there won't be an imminent tax consequence - the taxman will just note that next April you need a lettings page with your tax return.

The alternative - taken to extremes - is that you decide not to tell him til later in the year.  In the meantime someone who may hold a grudge (and this could even be the tenant) may "shop" you to the tax office.  As you have only just started letting there wouldn't be a tax bill for this, but it may make the tax people think "well if he hasn't told us about this, what else hasn't he told us about?".

Better to be safe than sorry.

catman (ex Inspector of Taxes)


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#3 09-05-06 18:58:59

ADIALAN
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From: NORTHAMPTON (UK)
Registered: 05-03-06
Posts: 741
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Re: tax

In a previous life my wife and I had our own Lettings Agency and now rent out a couple of properties for ourselves.

The income generated by rents received are taxable so yes you MUST tell the taxman.

You can offset some of the tax by certain things you spend on the property like re-decs etc. This area can get quite complicated in what you can and cannot claim for, too lengthy to explain here.

In all fairness to the dreaded tax man you will find them pretty good at guiding you but best of all get an accountant. They know the loop holes. My accountant saved me more in tax last year on legal loopholes than what he charged me. Thats gotta be good value for money

Alan


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