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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have income from a property that I let out. If all

Customer Question

Hello. I have income from a property that I let out. If all of the income goes to my partner with whom I am living do I need to declare it at all on my self assessment assuming, of course, that she declares it on hers?
Thanks
Andrew
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Who owns the property?
Customer: replied 1 year ago.
I do. Hitherto I have declared the income offset by outgoings and ended up paying around £500 in tax. However, for 2014/15 other circumstances have combined to push my total income over £100k which means I am adversely affected by the reduced personal allowance. If I can take this net income of £1,800 out of the equation it significantly reduces the impact of the reduced allowance.
Expert:  TonyTax replied 1 year ago.
Thanks. You cannot allocate rental income to someone who has no ownership interest in the property I'm afraid. If you did split the ownership of the property which you cannot do retrospectively, you could split the rental income as you liked. I hope this clarifies your position but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
If you made gift aid donations or personal pension contributions in 2014/15, these can be used to bring your income level down to protect some if not all your personal allowance.
Customer: replied 1 year ago.
Thanks. I thoght that might be the case. On the basis of the self assessment I have completed, but not submitted, I have an outstanding tax liability of £3,300 and it seems I have to pay that all up front before 31 January. Is there no way this can be offset, in whole or part, through my future tax payments? Ideally I would like to pay around £1,500 now and pay the rest through adjustments to my tax code. Is that possible please?
Expert:  TonyTax replied 1 year ago.
The underpayment has to be under £3,000 for it to be coded out over 12 months from April 2016. There was talk of allowing higher underpayments to be coded out if the earnings level could support it but it appears not to have come into force. In any event, the deadline tax return submission date for coding out a 2014/15 underpayment in 2016/17 was 30 December 2015. Call the Business Payment Support Service if you want time to pay. I have to go out for a while but I will be back later if you need more assistance.
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Customer: replied 1 year ago.
Hi
I have a follow up to the original question. I was asking about the scope for allocating income from the flat I own in order to try and get my income under £100k to avoid, or at least minimise, the reduction in my personal allowance. In practice the net income from the flat is a relatively small component of my overall income but the other three elements, which add up to around £107k, are all from PAYE related employments. Thus I am assuming there is no way of reducing that figure given it is already known to HMRC?
Thanks
Andrew
Expert:  TonyTax replied 1 year ago.
I'm afraid not. Once the tax year is over, that's it.
All you can do before the end of the tax year is to make a pension contribution or gift aid contribution so that it brings your adjusted net income below £100,000. Take a look here for more information:
https://www.gov.uk/guidance/adjusted-net-income

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