Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello Amanda, I'm Keith and happy to help you with your question.
You must self assess as you have income not declared through PAYE. It is your responsibility, you cannot just wait for HMRC to send you a form. You must also inform your tax office that you are renting out your house and the probable income therefrom. It is subject to Income Tax and is classed as a business and may attract NI contributions at Classes 2 and 4. I compute your total income to be of the order of just over the Personal Allowance. The simple way to cover this is to either reduce the rent or to ask your tax office to reduce your tax code number so the small amount of tax needed to meet your liability is deducted form your wages.
You need to have an annual income of over 21K before you need to repay any student loan. Interest does, however, accrue on un-paid loans.
Can I just do assessment on line or would I be better to get accountant to sort me out initially. I am also concerned that I am paying the right NI. I have not paid for the last 5 years or so as was unemployed and it was not paid for me as I didn't declare unemployed (due to depression). I lived off husbands income. (About £31,000) I have then been full time degree student so again not paying NI.
My Husband has also inherited small property which he intends to let out. He is on PAYE. His and my properties are currently in our individual names. Any further advice would be great thanks
Hi. Thanks for answer. I was thinking that I would probably need to pay voluntary NI contributions. When I looked on web site, I wasn't sure what as I am employed part time even though I don't pay any through that. I don't think that I have too many years left to pay for state pension, as received the basic previously when either with young children or working. I think I will use an accountant just to set me off in the right direction. Hate paying the £100 + but it might be beneficial in the long run to know it is correct. Thanks again Amanda