Enlarge/Change font size here
A A AHow does self employment work with more than 1 property ? Is each house it's own entity ?
Any advice appreciated.
Its across all the properties. You do not need to be tied to a particular task or location. All you will need to do is register as self employed within 3 months of paying yourself and submit a self assessment tax return.
You dont have to register as self employed to be a landlord, as its considered investment income, so your not really employed.
Andrew Taylor, Owner Brighter Living Property, Northampton
Sorry to sound silly, but to clarify..... If you own houses and take rent from tenants then do you have to be registered as self employed? If the offset will show negative profit due to renovation work on other properties, at what point do you register the income as officially it is still loss? I hope this makes sense
Its still a business even if its making a loss; you don't have to be registered as self employed but you do need to record your income from it with HMRC
Some of the renovation cost can be off set against rental income and some will go against improvements and you will be able to claim that against the gains when you sell the property. It is really worth getting a good property tax accountant - they can save you a fortune.
Rental income is in earned income (yes I know this is stupid but it is HMRC rules) but if it is your only income you will still be able to claim your personal allowance and other expenses before paying tax.
Follow me on Twitter@landlordtweets
My book, where I warn about the storm clouds that are gathering for landlords is available on Amazon title. Property For Rent – Investing in the UK: Will You Survive the Mayhem?
Follow me on Twitter @landlordtweets
I have been getting prices today and they are extortionate! Need to show for small mortgage argh
My understanding is that all income derived from property is classed as 'unearned income'. Its also to be declared to HMRC as well. There are certain allowances you can off set against tax, but I am a letting agent, my professional indemnity does not allow me to give you advice over this, apart from in its broadest sense. You would be better off going to a professional tax advisor or an accountant .
Cathy
I can recommend 'How To Save Property Tax' by Carl Bayley, published by Tax Cafe (delivered online via download and also a printed book in the post), which starts by evaluating what tax status you fall into based on the kind of property activities you're engaged in, before then explaining all the allowances and deductions you may be entitled to claim and then moves on to more structured ways of minimising your tax.
There's enough information to tackle doing your own bookkeeping and accounts (I do), but even if you do end up appointing an accountant, I think it's worth understanding how the system works yourself, especially the difference between deductions you can claim now, eg repairs (revenue expenditure) versus those you can only claim when you dispose of the property, eg the 'improvement' elements of renovations (capital expenditure), because it can influence the way you start to go about things.
It's updated every time there's a new budget, but I've only bought it every couple of years, because usually not that much changes.
I believe there are other property tax guides available, but I have no experience of those.
Hope this helps.
Roberto
Most Users Ever Online: 755
Currently Online:
11 Guest(s)
Currently Browsing this Page:
1 Guest(s)
Top Posters:
PaulBarrett: 2902
Mary Latham: 2194
LyndonBaker: 1805
David Price: 1700
Patricia: 1054
DATA CONTROL: 979
Member Stats:
Guest Posters: 2635
Members: 6862
Moderators: 5
Admins: 1
Forum Stats:
Groups: 1
Forums: 3
Topics: 4689
Posts: 31580
Newest Members:
anne_1, steveando, hiretradies, ulises22, caylinbr, nowthenModerators: News @ Tenant Referencing: 1636, laura: 15, Chloe: 107, lucybarr: 0, jaswhite: 20
Administrators: Paul Routledge: 3433