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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15730
Experience:  International tax
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I have been renting a house out since January 2014 and havent

Resolved Question:

I have been renting a house out since January 2014 and havent declared tax,but wish to.will I incur a fine for leaving it so long
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
HelloIf you contact HMRC first, they may consider your case more favourably. If you don’t, you could be charged a penalty. If you have a good and reasonable reason, the penalty (£100) can be waived.You can register for Self Assessment to declare any income you haven’t paid tax on from the last 4 years. If you already file Self Assessment then make a correction.
Customer: replied 2 years ago.

I receive £500 per month on the rental, wot roughly would I have to pay in tax.

Expert:  TaxRobin replied 2 years ago.
If all was income and you had no expenses ot claim for the rental that would be below your tax allowance amount.Depending on your total income, after your allowance for the year is applied then your income that falls into the bands would be 20% or 40% tax.
Customer: replied 2 years ago.

You mentioned there could be a £ 100 fine,I must admit I have been meaning to pay my due tax,and have no excuses.wot do you think I could say to hmrc to try and waiver any fine I may incur

Expert:  TaxRobin replied 2 years ago.
I understand.If you did not know that you had to report the rental or you knew and were just unable to pay, then state your position simply and honestly.refer back to your past compliance (assuming this is the first time you have allowed your tax to get in this situation).
Customer: replied 2 years ago.

I am employed and earn around £27000 a year , before tax,and im earning £500 off my rental that I own with no mortgage, wot rate of tax would I have to pay , Thankyou

Expert:  TaxRobin replied 2 years ago.
As you are employed your tax is paid on that amount already. As you are a basic rate taxpayer, you will pay 20% income tax on your rental profits.
Customer: replied 2 years ago.

So basically out of £500 a month rent I would have to roughly pay £100 tax as I own the property with no mortgage?

Expert:  TaxRobin replied 2 years ago.
You would need to look at the total profit form the rental. £500 a month is £6000 at 20% which is £1200.
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