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Posted 3 days ago

Self assessment on rental income

Hi,
I need some advice on paying tax on rental income with self assessment and declaring unpaid tax on rental income .

I am really confused it says you get your first £1000 tax free but if you have expenses can you claim this on top of the tax free allowance.

As the rent income was - £6000 per year, my expenses were £900
Can I claim both or can you only claim one of the £1000 tax free allowance or expenses?


Also, if anyone has had any penalties what are they like.
I declared the last 2 years and HMRC sent me a letter saying I need to register my self assessment within 3 months or I will have to pay a penalty. Does this mean they won’t fine me if I pay now for 2021 tax year?
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  1. windoz's avatar
    It's either the flat £1000 or the expenses not both. Which ever is higher you have to go with that not both.

    In your case you should put down the flat £1000.
  2. Palwan's avatar
    No you can't, either expenses or flat 1000 for self employment.

    I'm not 100% if BTL is classed as self employment. Please do check with a authorized capacity.

    BTW which year SA your doing at the minute?
    edddie.14555's avatar
    Author
    2021. Right so it makes sense to do what’s more
  3. Timbonagasaki's avatar
    It might be worth finding a local accountant (or book keeper) who is experienced with BTL. They will know what expenses you can claim and what records you need to keep.
    Saves you the stress of SA and will probably save you money. Their fees will also be tax deductable.
  4. mutley1's avatar
    You can't claim both. There is a penalty for late declaration and another one for late payment. I was a year late when I first started many years ago and I had to pay both penalties. They weren't big because I only missed one year and I had just started out they were lenient.

    You missed 2 tax years so there will be a bigger penalty for each I would think. Have you looked at HMRC penalties online?
    edddie.14555's avatar
    Author
    It says £1200. Hope it’s not this big
  5. bozo007's avatar
    Get a professional to help sort this out, at least until you understand how this actually works rather than applying your own interpretation.
  6. Angel21's avatar
    Self assessment tax form I think they would charge something like £200 so it's well worth it isn't it
  7. rimalpatel007's avatar
    Got accountant to declare four years of which two were previous. No penalty but interest on the two previous years.
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