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Where Taxpayers and Advisers Meet

Property Tax Return Not Required

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

Property Tax Return Not Required

Postby Mason1880 » Thu Feb 07, 2019 9:57 am

Looking for some assurance, I completed a tax return for my property rentals 4 years ago, this gave me a profit of £2100 for which my tax code reflected the following year.

Since then each year I have had a message from my accountancy firm that upon submission online they are given a message that no return is required and I have accepted this.

However I have received my tax breakdown for this year and note that the property rental element remains at £2100 however for the last 2 years the profit has been much lower, I have paid too much tax therefore.

Has anyone had experience of this? When I did my own self assessment I submit this every year and the tax was always accurate however this appears to no longer be the case.

robbob
Posts: 2743
Joined: Wed Aug 06, 2008 4:01 pm

Re: Property Tax Return Not Required

Postby robbob » Thu Feb 07, 2019 10:09 am

Hello Mason1880

You seem to be missing the point - sounds like your accountants havent explained the situation that well or their explanation may have gone over your head or down the swanny (it happens alot with us accountants :)) - clients say keep it simple when its anything bit simple

Even if you aren't obliged to complete tax returns you are oblige to calculate your rental profit every year and notify this income to hmrc so that the correct level of taxes is paid.
Practicably speaking it may be easier to do a tax return as communicating income each year with hmrc can end up being confusing as you have estimated income in year - adjustment for previous year and mid year revision once the previous years figures deem your current year estimate may need revising So the tax code could potentially be all over the place..

As a starter though work out rental profits and notify hmrc - or re-engage your accountant to sort this out.

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

Re: Property Tax Return Not Required

Postby Mason1880 » Thu Feb 07, 2019 10:16 am

Thank-you for the comprehensive response it’s much appreciated.

When I did my own return I found it best to fully complete a return each year irrespective if they wanted it or not.

Can the previous years be corrected as profit was down from £2k to around £600 for the last 3 years?

robbob
Posts: 2743
Joined: Wed Aug 06, 2008 4:01 pm

Re: Property Tax Return Not Required

Postby robbob » Thu Feb 07, 2019 10:24 am

Contact hmrc with the correct figures and they should advise what ability they have to make revisions - do this asap.

accutalk
Posts: 13
Joined: Mon Jun 25, 2018 9:19 am

Re: Property Tax Return Not Required

Postby accutalk » Mon Feb 11, 2019 11:34 am

Looking for some assurance, I completed a tax return for my property rentals 4 years ago, this gave me a profit of £2100 for which my tax code reflected the following year.

Since then each year I have had a message from my accountancy firm that upon submission online they are given a message that no return is required and I have accepted this.

However I have received my tax breakdown for this year and note that the property rental element remains at £2100 however for the last 2 years the profit has been much lower, I have paid too much tax therefore.

Has anyone had experience of this? When I did my own self assessment I submit this every year and the tax was always accurate however this appears to no longer be the case.
Yes, We knew someone who had faced a somewhat similar scenario, contact HMRC to sort them out


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