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Even rental income has a fairly generous allowance before you need to file a full tax assessment. The first £1,000 is tax free (presumably the cost of admin ma
by adwww 5y ago
Even rental income has a fairly generous allowance before you need to file a full tax assessment.
The first £1,000 is tax free (presumably the cost of admin makes it easier to let that go).
And up to £2,500 you just have to phone / email HMRC.
- nerdawson 5y agoThe various allowances are certainly helpful but £1,000 doesn’t really factor in when you’re dealing with rental income. Almost every landlord will cross that threshold and should expect to fill a return in. Hearing about how taxes work in other countries makes me grateful for the system we have here. Most people never have to file a return. The people that do have a more complicated arrangement and probably need to summarise expenses, etc.
- adwww 5y agoSure for any actual landlords, but at that point you're running a business and that's pretty different from 'normal' income. The allowances are more so ordinary people taking in a lodger don't get caught up in tax requirements. You could probably choose to pay yourself a PAYE salary from a limited company and not need to complete a personal tax return.