Rental income

Hi. My husband has a work and I don't had work. My husband and I jointly own a property that we rent out (50/50), not hold by company. The rental income goes into and out of a my personal account. I use this as income for household expenses. We need split the rental income (50/50) or under my personal account (100%)? Do I need to complete the Self assessment tax return? if can't under my personal account, I can transfer the £1250 personal allowance to my husband? How can I do is better for us. Thanks for your help.

Hi,

The default split between husband and wife and civil partners is 50:50. If your 50% of the gross rental income is over £1000.00, you meet the criteria to complete a Self Assessment Tax Return.

Register for Self Assessment

If your income is less than £11500.00 and your husband is does not pay higher rate tax, you can elect to transfer 1257 allowances to your husband.

The guidance at explains how the marriage allowance transfer works and how to claim. As it is your allowances you wish to transfer, you are the one who must submit the request.

Marriage Allowance

Thank you.

Thanks for your reply. How about housing expenses, use net profit or gross profit for tax return? e.g. rental income £1000, maintenance costs, management and agency free, etc...£200, my tax return is £1000 or £800？

Hi,

You need to declare the gross rental income and then claim the expenses. It is the net profit that is then taxable.

Thank you.

Noted with thanks. Do I need to provide receipts or invoices or any documents for deducting expenses? We handled the lease through a real estate agent, they only gave me a monthly statement and no receipts. My husband has a job and his wages have been tax-deducted. Is 50% of his rental income taxed as a self-employed person?

Hi,

If the property is jointly owned by you and your husband, you will both need to complete Self Assessment Tax Returns, with each of you declaring 50% of the gross profits and 50% of the expenses.  

While income from property is separate from self employment, there are some similarities. Both are reported in a self assessment tax return (SA103 - Self employment income and SA105 - Property income). 

Self Assessment tax returns

Self Assessment Tax Returns cover all world-wide income, being declared on different supplementary pages. You do not submit the receipts, invoices etc along with the tax return (SA100) and property income page (SA105), however, HMRC may ask to see them at a later date.  

The guidance on record keeping advises that you must keep records for at least 22 months after the end of the tax year the tax return is for. 

Keeping your pay and tax records

Thank you.

I had follow your instructions in the app, but my passport biometric chip not work, I can't scan it and I don't have UK passport, driving license and payslip, but I have BRP. I can't process ID check in online. I had called 03000203300 and 03002003310, the numbers are very busy and many times don't have any people hear. They said can't help me and let me call Head office, but head office said they also can't help me process ID check and let me call back HMRC. City council can't help me. Don't have any people can help, I feel very troubled.

My ID check problem still don't have any people can help. Can I use SA1 form for apply UTR? When I received UTR number and I can process tax return by online? I need finish SA105 (I just have 50% rental income)? How about SA103 for what? My husband also SA105?

Travel expenses - the allowance of 45p/mile does not cover my travel expenses, can I prorata the running costs such as road tax/ insurance/ services charges/MOT/ repairs etc., for my properties

When my tenant leaves at the end of their tenancy can I claim for replacement of carpets and redecoration of rooms etc.,

I have a family of badgers which as made a set within the garden of the property. The east surrey badger trust will accdess the nproblem and hopefully remove them. Once this is done can I claim expenses for my gardener to repair all the damage caused and fill in the set

Hi Joey Sin,

If you meet any of the required Self Assment criteria found below but are not self employed, then we would advise to complete the SA1 form.

Check if you need to send a Self Assessment tax return

However, if you are self employed, then the CWF1 form should be completed and submitted to HMRC to have a UTR number allocated to yourself.

You would be correct, the SA105 supplementary page should be filed alongside the SA100 main tax return if your net property income exceeds £2,500, property profit minus any claimable expenses.

In addition, the SA103 page would be filed alongside the SA100 and SA105 if you were in receipt of of a self employment profit of over £1,000. 

Thank you.

Hi Kenneth Marwood,

Any expenses claimed against a letting business must relate wholly and exclusively to that letting business so the costs of road tax, insurance, services or MOTs would not be allowable and only the cost of repairs to any damages incurred during a business journey could be claimed.

Thank you.

Hi Kenneth Marwood,

Provided the letting business is continuing these would be allowable expenses.

Thank you.

Hi Kenneth Marwood, 

If this work was just to restore the garden to its previous condition the expenditure would be allowable.  

Any landscaping which improved the garden and, therefore, increased the value of the property would be capital expenditure and could not be claimed against letting income. It would be taken into account in calculating any captal gain or loss on disposal of the property.

Thank you.

Dear Sir, You mentioned in a post that "SA105 supplementary page should be filed alongside the SA100 main tax return if your net property income exceeds £2,500, property profit minus any claimable expenses.". But it seems that SA 105 is used for UK property. Which form should be used for reporting overseas property's rental income? Thanks

Hi Sunsun Hung,

Foreign income should be reported on SA106 and the £2500 limit does not apply.
Any amount of foreign rental income must be declared, even at a loss.

Thank you.

Can you please confirm if a nonresident can claim expense incurred for applying UTR number (paid any professional fees) against his rental income in UK?

Hi Swati,

Any expenses incurred in applying for a UTR would not be allowable against rental income.
Please refer to the guidance below for a detailed list of allowable expenses.  
Deductible expenses

Thank you.