Tax on income from cottage

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Tia Abuela
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Joined: Sun Mar 23, 2014 8:57 pm
Location: Somerset

Tax on income from cottage

Post by Tia Abuela »

How do I get started with paying tax on my income for my cottage? I already have a part time job on which I don't pay any tax as I'm under the threshold, but my cottage will take me over (she said hopefully!)

I'm not quite sure how to get started, and a bit apprehensive about ringing the tax office!
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Nemo
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Location: Norfolk

Post by Nemo »

The tax man is usually very helpful. :wink: You will need to register for self assessment, enter the income and all related outgoings in the income from property section. You also enter your earnings from elsewhere and a calculation will be done to tell you how much tax you owe. There are lots of threads on here regarding starting out and doing your accounts. Well worth doing a search and reading some. Welcome by the way. :)
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Cassis
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Post by Cassis »

The government website is quite useful https://www.gov.uk/renting-out-a-property/paying-tax but if you get stuck call the tax office - they're very helpful normally.
Real name Phil
Moved to France in 2004
Likes ducks, nature, gardening, furniture restoration, DIY, rugby, blah, blah.
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Cassis
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Post by Cassis »

Nemo wrote:The tax man is usually very helpful.
Snap! :lol:
Real name Phil
Moved to France in 2004
Likes ducks, nature, gardening, furniture restoration, DIY, rugby, blah, blah.
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Casscat
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Post by Casscat »

If you're really not confident then you could engage a local book keeper to file your accounts for you. As long as they are fully au fait with the rules relating to allowable deductions for rental properties you don't need to go the full hog and retain an accountant. I'm going to get someone to do my self assessment for me as I think it will be worth the fee to save the hassle - and I may be wrong but I think accountancy fees are deductible :mrgreen:
Justphil
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Post by Justphil »

Accountancy fees are tax deductible - I know - its my day job

HMRC may be helpful, but from experience the staff on their phone lines don't actually know that much about tax.

The tax rules for holiday lets is completely different to other lettings and a good place to start is https://www.gov.uk/government/publicati ... tings-2015
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