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bigduckontax, Accountant
Category: Tax
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If my only income year will be money that I borrow

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If my only income for the year will be money that I borrow from my home ( ie I increase the mortgage and use it to live on and to pay the the increase on the mortgage), I won't have any income but would I have to file a tax return? I don't receive any benefits etc.
Hello, I'm Keith and happy to help you with your question.
Loans are outside the scope of UK taxation. The only way they come into the equation is the interest thereon which could, were you letting which you are not, be allowed against rentals.
You are only required to file a tax return if you are in receipt of income which has not been taxed at source. You have no income so you don't. Even HMRC don't want to bother with processing returns which yield no revenue. I am of the opinion that you would not have to make an annual self assessment tax return.
I do hope I have set your mind at rest on this matter.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.
Just one small point, if HMRC ask you to make a return you must comply.