UK Tax News from TaxPenny

If you make a net rental loss from the residential letting then it is up to you to notify HM Revenue & Customs (HMRC).  However, should you wish to use the rental losses against any future profits then you are advised to inform HMRC so that they have a record of this.

Should you have made rental profits then contact HMRC office for advice.

Typically, for an employed person or a person getting pension through PAYE  a Tax Return would not be required if the rental profits are less than £2,500.

Instead, the tax on this would be collected through your PAYE tax code. Regardless of your employment/pension status,  for profits of over £2,500  you would need to notify HM Revenue and Customs that you have rental income and complete details of this on a tax return.

If you are unsure, you can always come to TaxPenny to complete your rental pages of your Tax Return and be assured that we will maximize all allowable expenses to reduce your tax.