Personal Tax with rental income

Personal Tax Return , accounts for my wages but wont calculate the rent i have received?

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Hi All

I am currently trying to submit my Self Assessment - I work full time, and pay my regular tax through my work. I rent out my house, so this is the 3rd year of me doing the Self Assessment - this year i earned £6500 in rent. My expenses were just over £8000 - the tenants absolutly wrecked the stair case, the complained about the fence so had to replace the whole thing, the kitchen needed 4 new cupboards, they needed a new window to name but a few things!! So ive entered my rental amount received and then entered the expenses - just as I have done in the previous years - but when it comes to the calculation it just shows my income from my job and the tax ive paid through my job - it dosent show my rental income or the expenses I've incurred through that?

I must have not done something /done something incorrectly - I've been back through it all to double check and nothing stands out.

Thanks :)

Replies (26)

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RLI
By lionofludesch
22nd Jan 2019 11:07

Left it a bit late, haven't you ?

You have no income from rents, apparently, so nothing shows on your calculation.

You can only carry the losses against future rent income.

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 12:03

Yeah I know - Its usually so straight forward that it never really matters.

I've not had a loss before so maybe that's why its never occurred.

I would have thought that I would have had a rebate? And get the tax taken off what I had already paid through my full time job?

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Replying to Pailing83:
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By andy.partridge
22nd Jan 2019 12:09

Yeah babe, you would have thought that, but that's because you're wrong.

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Replying to andy.partridge:
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By Pailing83
22nd Jan 2019 13:32

andy.partridge wrote:

Yeah babe, you would have thought that, but that's because you're wrong.

Please don't "Babe" me - I have simply asked a question - if you don't want to offer anything constructive that's fine but please don't patronise me.

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 12:33

This tax return business isn't as simple as HMRC try to claim, is it ?

If you were expecting a repayment, why did you wait so long ?

How are you coping with the new interest rules ?

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 13:39

I've done them before with no problems at all. Just in this instance as my expenses are so high I presumed (wrongly I now know) that it would be adjusted on the calculations page and the tax that I had paid through my full time job would mean that the difference would be paid back to me.
I know that I can only claim back 75% of my mortgage interest for this financial year.

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 13:49

Pailing83 wrote:

I know that I can only claim back 75% of my mortgage interest for this financial year.

What about the other 25% ?

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 15:00

So that is a tax reducer at 25% - so as a basic rate tax payer it makes not difference to me

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 15:07

Not the point, really - I don't think you've quite grasped it.

You can't use it if you have a rental loss as it's limited to your rental profit - which is the princely sum of £0.00.

You're going to need a bit more research before doing next year's return. Try not to leave it until the end of January.

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 15:15

I know that its not going to help if my profit is Zero.

I will use these losses to offset against next years profit which. For the previous 2 years its been fine as my expenses were limited but the tenants were terrible and have cost so much money. They moved out last Summer.

Thanks for your help Lionofludesch. Greatly appreciated.

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 15:17

Pailing83 wrote:

I know that its not going to help if my profit is Zero.

Yeah - but what are you going to do with the interest ?

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 15:23

Can I carry this forward too so as not to waste it?

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 15:43

Pailing83 wrote:

Can I carry this forward too so as not to waste it?

Probably but read the detailed rules.

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Replying to lionofludesch:
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By Pailing83
22nd Jan 2019 15:50

Thank you I will do that

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Replying to Pailing83:
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By Waves
22nd Jan 2019 13:53

Pailing83 wrote:

I know that I can only claim back 75% of my mortgage interest for this financial year.

I’m afraid you can’t, hun.

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Replying to Pailing83:
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By andy.partridge
22nd Jan 2019 14:00

Pailing83 wrote:

I know that I can only claim back 75% of my mortgage interest for this financial year.

Yeah babe, you would know that, but that's because you're wrong.

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Replying to andy.partridge:
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By Pailing83
22nd Jan 2019 15:03

Why is that ?

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Replying to Pailing83:
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By andy.partridge
22nd Jan 2019 15:10

https://www.gov.uk/government/publications/restricting-finance-cost-reli...

"Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.

Landlords will be able to obtain relief as follows:

in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction"

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Replying to andy.partridge:
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By Pailing83
22nd Jan 2019 15:18

Thanks for this but I'm not quite sure how me saying that I know I can claim 75% of the interest on my mortgage and the remaining 25% as a tax reducer is different from what you have replied with?

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Replying to Pailing83:
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By andy.partridge
22nd Jan 2019 15:32

That's because you haven't noticed that my reply was to your reply to my reply to a different wrong statement you made. Or perhaps you did notice and are wriggling. Attention to detail is important.

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Replying to andy.partridge:
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By Pailing83
22nd Jan 2019 15:46

You need to get a life! I asked a question - to you guys its simple - if all you were going to do was rip me to pieces then why bother wasting your time answering me and trying to belittle me!

1 person was a help - the rest just used it as an opportunity to be holier than thou.

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Replying to Pailing83:
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By andy.partridge
22nd Jan 2019 16:24

I don't think anyone's ripped you to pieces. You're being over sensitive. Quite an endearing quality for a landlord if it's used to benefit your tenants.

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Replying to Pailing83:
RLI
By lionofludesch
22nd Jan 2019 15:12

The difficulties start when you have a loss.

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Replying to lionofludesch:
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By andy.partridge
22nd Jan 2019 15:19

Earlier than that for many.

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Replying to andy.partridge:
RLI
By lionofludesch
22nd Jan 2019 15:24

I can see that as a possible scenario - but, happily, I don't have any clients who have rental properties mortgaged to the hilt.

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By Matrix
22nd Jan 2019 13:45

Lion already provided the answer in the first reply.

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