Tax - Self Assessment

Hmm, I sent my stuff off to my accountant but they are messing me about and its getting late now. I didn't think i'd have to pay any tax as I was well under the 10k as I haven't been working due to anxiety, but will I have to pay the class 2 national insurance before the 31st?

I have always paid that quarterly, but apparently it has changed now. I should still have a few hundred that I overpaid once and never claimed back so would they automatically take the national insurance payment from that?
 
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Going to have to do mine on Tuesday, have most of it done on a spreadsheet but no doubt be something wrong that screws things up.
Nothing like leaving it to the last minute :D

I used to pay an account £1k a year but do it myself now....easy enough.
 
Oh crap, I have just realised I need to do a self assessment before the 31st Jan for my flat I am renting out!!! I've never done this before, any ideas other than speak to an accountant to do it for me?
 
panthro said:
Oh crap, I have just realised I need to do a self assessment before the 31st Jan for my flat I am renting out!!! I've never done this before, any ideas other than speak to an accountant to do it for me?
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Tad late in the day, you would have to register online, request a code yada yada. Do you know if the rental property made a loss during year?
 
panthro said:
No it didn't. I just had tenants move in last April and pay me rent to cover the mortgage and fees.
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If it was on or before the 5th of april 2016 you started to receive payments then you dont have to do one. If it was on or after 6th of april 2016 you dont have to do a tax return until this coming april with a deadline of 31st January 2018
 
Big Spender said:
If it was on or before the 5th of april 2016 you started to receive payments then you dont have to do one. If it was on or after 6th of april 2016 you dont have to do a tax return until this coming april with a deadline of 31st January 2018
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They moved in mid March 2016 and the first payment I received from them was 4th April 2016. How come I don't have to do one?
 
panthro said:
They moved in mid March 2016 and the first payment I received from them was 4th April 2016. How come I don't have to do one?
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31 January 2017 is the deadline for income earned from 6 April 2015 to 5 April 2016. As long as your property income doesn't go above £15k(?) you can continue to be taxed on a cash basis rather than accruals.

panthro said:
April 2016. The mortgage is interest only.
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Slight change to the rules for 2016/17 mortgage interest:

https://www.gov.uk/government/publi...-finance-cost-relief-for-individual-landlords

There's actually some quite interesting cases where people with large, high finance cost properties end up paying more in tax than they actually receive in rent under the new rules...
 
dante6491 said:
31 January 2017 is the deadline for income earned from 6 April 2015 to 5 April 2016. As long as your property income doesn't go above £15k(?) you can continue to be taxed on a cash basis rather than accruals.



Slight change to the rules for 2016/17 mortgage interest:

https://www.gov.uk/government/publi...-finance-cost-relief-for-individual-landlords

There's actually some quite interesting cases where people with large, high finance cost properties end up paying more in tax than they actually receive in rent under the new rules...
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I do feel there is a ridiculous duality when they exempted ltds from the same rules, basically allowing full exemption if you buy as an ltd, as opposed to buying as a person.
I can't see the difference personally.
 
dante6491 said:
April 2015 or April 2016?

Mortgage or mortgage interest? Only interest is deductible.
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Only for the SA you need to complete this year. Next years SA is different and that won't be the case anymore.

Thank god the Mrs sold her flat and this is the last SA we have to do. Going to apply to get her off of SA.
 
dante6491 said:
31 January 2017 is the deadline for income earned from 6 April 2015 to 5 April 2016. As long as your property income doesn't go above £15k(?) you can continue to be taxed on a cash basis rather than accruals.



Slight change to the rules for 2016/17 mortgage interest:

https://www.gov.uk/government/publi...-finance-cost-relief-for-individual-landlords

There's actually some quite interesting cases where people with large, high finance cost properties end up paying more in tax than they actually receive in rent under the new rules...
Click to expand...

Thanks very much for the info and help :) Have been reading on the gov website too (I should have done that a long time ago) about returns. I only had an income of about £500 after mortgage payments etc for the 2015-2016 tax year as they moved in on March 2016 so no tax return needed.
 
panthro said:
They moved in mid March 2016 and the first payment I received from them was 4th April 2016. How come I don't have to do one?
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You have to do one before the 31st Jan 2017 deadline if you recieved any payments (over certain limits) between 06/04/15 and 05/04/2016. You wouldnt have had to do one until next year if the payments only started on or after 06/04/2016. You should maybe get an accountant or tax advisor to sort this out for you.
 
panthro said:
Thanks will speak to an accountant tomorrow. I believe it's payments over £2500 but will double check.
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If you only received one payment just before the end of the tax year, I wouldn't worry too much. In an ideal world you would have known that you had to an SA, but hey hoe... these things happen. You can't plead ignorance with the tax max, but I doubt it very much that they will investigate you. Just make sure you get yourself sorted for the new tax year.
 
Does anyone that has done their SA know what the deal is with the new class 2 NIC payment? I'll ring my accountant tomorrow, but just getting worried in case i dont make the payment in time.

I've not had any info about how much it is now or how to pay it.
 
Completed mine tonight, if I use the figures from my pay slips it said they own me just under £6k! I've realised the company has added up my tax paid wrong somehow for a month when I had a K tax code, so really I owe them £50... but should I fix this error myself or use the correct values and wait for it to get fixed by them?
 
Mark A said:
Does anyone that has done their SA know what the deal is with the new class 2 NIC payment? I'll ring my accountant tomorrow, but just getting worried in case i dont make the payment in time.

I've not had any info about how much it is now or how to pay it.
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Base class 2 NIC's are £2.80 a week so just under £150 a year, your NI is calculated along with any other tax payments automatically.

It now gets paid with your self assessment, fill in form accurately and it will give the required payment at the end, national insurance is 'taken first' from any payments made to HMRC (says on the 'totals' page iirc).
 
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