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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am employed by the NHS as a nurse, have been for many years,

Resolved Question:

I am employed by the NHS as a nurse, have been for many years, and have my tax dealt with at source.I have two rental properties which has yielded little profit, due to high morgage payments, except in the last 2years. I have received a letter from HM Revenue explaining that only if I expect the gross rents to be £10,000 or over this year a self-assessment Tax Return will be required. I have not exceeded tis amount in any year with the rental properties.

My questions are -
Is this treated totally separately from my NHS salary, and is this an allowed allowance on top of top of my nursing salary which is approx. £35,000 per annum, or should I have
been filing a self assessment form as recent income from the rented properties has come in
about £5000 for a recent year hence total income nearer £40,000.
From previous discussion with our Bank I have thought an allowance is in place.
Secondly how long has the £10,000 limit been in place for-hoping I have explained this fairly clearly, many thanks
XXXXX XXXXX
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

There is no allowance that you can use against rental income exclusively. You should pay tax on the rental income less deductible expenses given that your personal allowance is used against your salary. There is a list of the types of expenses you can claim here.

The rule is that if your net of deductible expenses rental income is £2,500 or more per annum, you should be disclosing it in a tax return. Any profit is taxable. Take a look here for the criteria for having to complete a tax return or not having to complete one. If you need to register for self-assessment, you can do so using a form SA1 here. In my opinion, it's a good idea to complete a tax return so you can register your rental losses with the tax office for offset against profits you may make in the future.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 3 years ago.
I have to go out for a while but I will be back a little later to answer any follow up questions you may have.
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