ChatterBank1 min ago
How Do I Complete A Self Assesment For A Rental Property
4 Answers
Hi everybody.
I rent a house via northwood (managed property service) and pay a mortage on it. The rent covers the mortgage. I need to complete a self assment but the document makes it look like i earn ove 4k in profit from rent. Is there a guide on how to complete the form correctly as i think i must be doing it wrong, i don't want to end up with a massive tax bill. May thanks
I rent a house via northwood (managed property service) and pay a mortage on it. The rent covers the mortgage. I need to complete a self assment but the document makes it look like i earn ove 4k in profit from rent. Is there a guide on how to complete the form correctly as i think i must be doing it wrong, i don't want to end up with a massive tax bill. May thanks
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You seem to be doing things the hard way!
As long as the turnover from your business(es) doesn't exceed £150,000, you can elect to submit your return on a 'cash basis' when you go through the online process. (The option to use 'cash basis accounting' occurs very early on when you submit a return online).
If you use cash basis accounting you don't have to tell HMRC anything at all about your sources of income or your expenses. You simply work out your profit for the year and declare just that one figure. (Obviously you still need to keep records of how you arrived at that figure, just in case the taxman decides to check).
As long as you've worked out your overall profit (if any) before you start submitting your tax return, the whole thing should take well under 5 minutes to complete if you use cash basis accounting.
As long as the turnover from your business(es) doesn't exceed £150,000, you can elect to submit your return on a 'cash basis' when you go through the online process. (The option to use 'cash basis accounting' occurs very early on when you submit a return online).
If you use cash basis accounting you don't have to tell HMRC anything at all about your sources of income or your expenses. You simply work out your profit for the year and declare just that one figure. (Obviously you still need to keep records of how you arrived at that figure, just in case the taxman decides to check).
As long as you've worked out your overall profit (if any) before you start submitting your tax return, the whole thing should take well under 5 minutes to complete if you use cash basis accounting.
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