Archive for Downsizer For an ethical approach to consumption
 


       Downsizer Forum Index -> Finance and Property
Nick

No need for Self Assessment?

Quote:
Income above a certain level from savings, investment or property
If you don't already complete a tax return, you'll need to do so if you receive any of the following:
10,000 or more income from savings and investments
2,500 or more income from untaxed savings and investments
10,000 or more income from property (before deducting allowable expenses)
2,500 or more income from property (after deducting allowable expenses)


So, if I'm reading this right, if you make less than 2,500 profit, you don't have to pay any tax on it. Is that right?

Clearly, I could ring them, but it takes forever in January.

From http://www.hmrc.gov.uk/sa/need-tax-return.htm

Anyone know?
onemanband

I think what they are saying is you don't have to fill out a return, not necesserily that you don't pay tax.
Savings and investments are also on the list and they are usually taxed before you recieve interest.

As to wether there is a 2500 tax free allowance on rental property I don't know. I would guess that if you are paying income tax, any profit from 2nd property rental is then taxed at normal rate.

I do know you can earn upto 4250 tax free (regardless of other income) under the rent a room scheme. That is renting a room in the house you live. I enter this in my return - it is simply one box to tick.
Nick

But without a return, theres no way to pay the tax. You wouldn't have a UTR, for example. Clearly any tax would be at the rate you'd expect, but how would you pay without filing a return?

I'll ring them in about April.
Treacodactyl

When I finally managed to stop having to fill out the full self assessment forms I still had to fill out a one or two page form that listed incomes.

I assume you'll get sent such a form and then the tax you owe will be collected via PAYE via a new tax code.

A word of caution though, try and find out what you need to do because it's no unheard of for them to send out a self assessment form which you will then have to fill in.
Nick

Oh, I do self assessment, I just saw it on a page, and wondered.
onemanband

a short tax return (sa200) ?
Nick

Aha.
       Downsizer Forum Index -> Finance and Property
Page 1 of 1
Home Home Home Home Home