Paul O Mahoney
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I asked this a few months ago and RedOnion gave some great advice but cant find the thread.
We have 2 rentals and I include all income less allowed expenses and pay the relevant tax every year.
I got sick in 2007 and thought I instructed our solicitor to transfer ownership to my wife , prognosis was not good then.
The mortgages are in joint names but the rental income is paid by an agent into my wife's savings account monthly. I have assumed that the taxable income was hers and added it to her overall liability which obviously meant it was taxed at 52% .
I had illness income upto my full remission at the end of 2013 and haven't been working for a salary since 2007.
We are jointly assessed and I haven't changed anything, her Salary is substantial and she pays approximately 120k in income taxes annually and its annoying.
As I am still a legal owner of the properties and as RedOnion pointed out I might be losing out on getting some of that income taxed at 20% upto the threshold.
My questions are can I go back and rectify this and while I'm fairly happy to do it myself Would it be more efficient to employ an accountant to do this?
We have never been audited and if one were to come I'm sanguine that I have done our returns honestly and have all the backup for expenses for the properties and for all other non payroll income such as RSUs ,Dividend income, and Rtsos .
Any advice would be greatly appreciated for example how far can I go back?
I should add, all maintenance costs to the properties are paid for by the agent and then deducted from rental income with the net amount transferred to my wifes account.
We have 2 rentals and I include all income less allowed expenses and pay the relevant tax every year.
I got sick in 2007 and thought I instructed our solicitor to transfer ownership to my wife , prognosis was not good then.
The mortgages are in joint names but the rental income is paid by an agent into my wife's savings account monthly. I have assumed that the taxable income was hers and added it to her overall liability which obviously meant it was taxed at 52% .
I had illness income upto my full remission at the end of 2013 and haven't been working for a salary since 2007.
We are jointly assessed and I haven't changed anything, her Salary is substantial and she pays approximately 120k in income taxes annually and its annoying.
As I am still a legal owner of the properties and as RedOnion pointed out I might be losing out on getting some of that income taxed at 20% upto the threshold.
My questions are can I go back and rectify this and while I'm fairly happy to do it myself Would it be more efficient to employ an accountant to do this?
We have never been audited and if one were to come I'm sanguine that I have done our returns honestly and have all the backup for expenses for the properties and for all other non payroll income such as RSUs ,Dividend income, and Rtsos .
Any advice would be greatly appreciated for example how far can I go back?
I should add, all maintenance costs to the properties are paid for by the agent and then deducted from rental income with the net amount transferred to my wifes account.
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