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bigduckontax
bigduckontax, Accountant
Category: Tax
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I currently work in a part time job earning about £4,500 per

Resolved Question:

I currently work in a part time job earning about £4,500 per year.
Recently I inherited 50% of a house and we intend to rent it out. It has not mortgage and after agency costs and other expenses I’m told will have a profit of about £6,000 per year.This will mean I will earn an estimated total of £10,500 per year.Currently I do not do a self-assessment tax return. As I will become a landlord will I need to start to do a tax return?The other owner of the other 50% of the house will be doing a tax return.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Yes, you will, you should warn off your tax office of your new venture. Of course, with a net income of under the Personal Allowance of 11K for the 16/17 tax year, you still will not have any Income Tax (IT) liability although there may be some Class 2 National Insurance (NI) to pay as the income is over GBP 5966. Your statement when you self assess will tell you of any liability in this matter. However paying NI is complicated if you run a business involving land or property which is part of your activities. I would be inclined to draw your tax office's attention to the position when you advise them of your new landlord's activities (see above) and see how HMRC would like the matter handled.

I do hope that you have found my reply of some assistance.

Customer: replied 1 year ago.
Hi KeithI used the website "Money Saving Expert" and you're correct although no tax, there would be a liability for National Insurance.Thanks for your help.
Expert:  bigduckontax replied 1 year ago.

There would indeed, always bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes, although in his time NI did not exist!

Delighted to have been of assistance. Please be so kind as to rate me before you leave the Just Answer site.

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Expert:  bigduckontax replied 1 year ago.

Thank you for your support.