I have been submitting our income tax returns online for the last 6 years - selecting 'Rental Income Only', I've only now realised it probably should have been under 'PAYE and other income' - the property is in my husbands name and he does have a full time PAYE job also.
We only have rental income of 24k, mortgage interest and management fees of (8k) and very little else - I'm an accountant (completely different field) so thought this would be very manageable to do myself!
We pay about 2-3k a year at the moment but if 'PAYE and other' it should be about 7k - 20% rate versus 40% and also I think the Personal tax credit has been claimed twice - once for PAYE and again for income tax
Needless to say we can't afford that (full time childcare and zero disposable income each month). I'm very happy to sell the property to clear tax and because we can't afford it clearly (will need to give nearly 7 month's notice to tenants) but I'm not sure what I should do about the tax part. It's keeping me up at night as a genuine mistake but also that I probably should know better.
If we sell the property next year (due to notice period) and pay CGT on the gain, will we also have to make up the income tax difference then or does the sale trigger anything income tax related? If I contact Revenue now to bring this up I have no way of paying anything extra. I'm happy to get this sorted I just don't know the best way to?
We only have rental income of 24k, mortgage interest and management fees of (8k) and very little else - I'm an accountant (completely different field) so thought this would be very manageable to do myself!
We pay about 2-3k a year at the moment but if 'PAYE and other' it should be about 7k - 20% rate versus 40% and also I think the Personal tax credit has been claimed twice - once for PAYE and again for income tax
Needless to say we can't afford that (full time childcare and zero disposable income each month). I'm very happy to sell the property to clear tax and because we can't afford it clearly (will need to give nearly 7 month's notice to tenants) but I'm not sure what I should do about the tax part. It's keeping me up at night as a genuine mistake but also that I probably should know better.
If we sell the property next year (due to notice period) and pay CGT on the gain, will we also have to make up the income tax difference then or does the sale trigger anything income tax related? If I contact Revenue now to bring this up I have no way of paying anything extra. I'm happy to get this sorted I just don't know the best way to?