HMRC Admin 8 Response

Hi,
The income should be reported in accordance with who has the beneficial interest.  
Therefore to revert the original agreement we would suggest that you change, vary or draw up another trust deed which would need to be signed/dated.
We do not need sight of this.
Thankyou.

Hi,
We confirm that you will require a Deed of Trust to split the property income in unequal shares.
Further information can be found in the Trust, Settlement and Estates Manual in respect of property held jointly by married couples: Trusts, Settlements and Estates Manual
Thankyou.

Hi,
We apologie for the problems you have experienced in contacting HMRC
Unfortunately, this forUM can only give general advice. As your question relates to your personal tax affairs, WE suggest you try again by telephoning, requesting you wish to speak to a technician or write to us at HMRC BX9 1AS.
Thankyou.

Hi,
You have two options available.
If you meet the conditions and claim the rent a room relief - method A then you are allowed to receive income up to £7500 in a tax year which would be tax free.You cannot however deduct any  expenses if you use this method.
You can use the method B rather then rent a room relief which is rents received minus expenses wholly incurred for the property business.
However if this income after expenses is over £1000 then it would be chargeable to tax.
You have mentioned 'personal' expenses. I assume you mean expenses you solely incurred in relation to the property business.
HS223 Rent a Room Scheme (2023)
Thankyou.

Hi,
Yes you apportion the income in relation to the start date shown on the declaration of trust.
You  will  not need to put any partnership  income on your tax return if you received no income after that split in the relevant tax year.
However residential finance costs can be different. The interest costs are only allowable on the person who owns the mortgage.
This means that for your wife to claim any interest, the mortgage would need to be joint or in her name.
We have attached some general guidance:
Savings and Investment Manual
Factsheet: beneficial ownership
Partnership Tax Return Guide
Thankyou.

Hi,
In your case it is important that we refer you to BIM45690.
This states that 'when a business is funded using borrowed money and that money is used for business purposes the interest is allowable.against that trade, so long as it is not for private purposes.'
This is then covered under the residential finance costs section - 20% tax relief:
Specific deductions - interest: Funding the business
Thankyou.

Hi,
We have attached some guidance which may answer your question, however if this does not help then  you will need to contact the HMRC stamp duty helpline on  0300 200 3510:
Stamp Duty Land Tax
Stamp Duty Land Tax Manual
Thankyou.

Hi,
Your casual earnings would be classed as self employed income if income tax and national insurance were not deducted at source through PAYE. This means that if it is under the £1000 trading allowance it does not need to be reported to HMRC as it is not considered to be taxable.
We have attached links to help you:
Working for yourself
Trading allowance
We hope that helps
Thank you.

Hi,
You are correct, you may choose not to claim property finance costs and carry such amount forward to a future year where it would be more beneficial to yourself.
Thankyou.

Hi,
In terms of the 2021/2022 tax year, as you have stated you have use of the personal allowance and the letting agent deducted tax at source through the NRL scheme.
Upon submitting the 2021/2022 tax return, you would declare both rental income receipts and the tax that was deducted, which in tun would then apply your personal allowance and generate a repayment of tax.
As the tax was deducted in the 2021/2022 tax year, you would not be able to claim a repayment for such year in the 2022/2023 year as these are dealt with in isolation based on level of income, expenses and ta deducted.
Thankyou.