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Where Taxpayers and Advisers Meet

When to tell taxman?

the.engine
Posts: 1
Joined: Wed Mar 18, 2015 9:35 pm

When to tell taxman?

Postby the.engine » Wed Mar 18, 2015 9:42 pm

Hi, I have been letting my old residence (2 bed house) since last November (2014), when I moved out into a newly purchased, higher value, house. Am I correct in understanding that I have until September this year (2015) to inform HMRC for tax on rental profit? Do I need to inform them that my new house is my primary residence? Thanks! John.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: When to tell taxman?

Postby GlobalTaxAdviser » Thu Mar 19, 2015 11:26 am

Hi

There is no real time limits and no penalties for informing HMRC. Just make sure you do file your tax return in time

https://online.hmrc.gov.uk/shortforms/form/SA1

It is good practice to inform HMRC of your primary residence if you have more than one property especially when you have moved to another property so that you can have PPR on both

Thanks

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: When to tell taxman?

Postby section 44 » Thu Mar 19, 2015 11:40 am

Do I need to inform them that my new house is my primary residence?
This is irrelevant. As described, you have only ever had one residence.

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: When to tell taxman?

Postby Ian McTernan CTA » Thu Mar 19, 2015 1:35 pm

Notification for chargability is within six months of the end of the tax year in which chargability first arises, in theory, after which time in theory they can charge you a penalty (which never happens in practice).

You should notify HMRC that you now need to start completing a SA Return for the rental income, and do it sooner rather than later. Doesn't matter whether it is overall a loss or profit.

More importantly, you should ensure you are claiming all the expenses you can against the rental income as well as the maximum amount of interest on your mortgages.
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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