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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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As I have not worked since beginning to receive my State Pension

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As I have not worked since beginning to receive my State Pension (currently £5,111.08 per annum) I have lived mainly by drawing down from my savings, and have not completed annual tax returns. My daughter and I own a property which is let from which she received the rental income and paid income tax on it as a British taxpayer, and then helped me out financially when necessary.
Last year she moved overseas and received her salary there, so the rental income was paid directly to me, namely £7,500 for the last twelve months. There have been considerable outgoings on the property during this time, totalling £3,806.43, leaving £3,693.57. (repairs, and increased insurance, mortgage payments,etc) bringing my income to £8,804.65 per annum).
As I live alone, have no other means of support, and this figure is well below the Personal Allowance for a single person in my position, my question to you is: Do I have to start submitting Annual Income Tax forms again this year?
Many thanks for your assistance.
Karen
Hello and welcome to the site. Thank you for your question.

As the rental income after allowable expenses is £2,500 or more then you will need to complete a tax return.

I would like you to read the section "You have income from savings, investment or property" within "Who needs to complete a tax return" here

http://www.hmrc.gov.uk/sa/need-tax-return.htm

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


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