Rental Income Tax Question

dr_octagon

Registered User
Messages
18
This is probably a stupid question but: I started letting a property in August 2009 - do I pay the tax on that income this year (2010) or should I already have paid it?
 
Your tax return for your 2009 rental income will be due before 31st Oct this year.
 
You'll also have to pay preliminatry tax for 2010.

Unhelpful.

He may not have to. We don't know level of rental profits he's likely to have, or indeed if he has any.

If you have taxable rental profits (normally revenue income less day-to-day normal outgoings less some (not all) mortgage interest (but ignoring capital repayments)) for 2009, and if you're up-to-date with employment/sole-trader taxes, you will pay tax on the rental property by the latest Oct/Nov 2010 on 2009 rents/income.

Generally at the same time, you will make an advance payment of tax for the 2010 tax year (therefore two years of a tax payment). (This 'double-payment is due to you just starting - normally however, in years gone by it was unlikely that rental profits would generate profits in the first few years so this wasn't an issue in the good old days).

In 2011, you will make a futher advance payment of tax for 2011. You will also pay tax/receive a refund of tax for the rental property where the advance payment paid in 2010 is greater/lesser than the actual liability for the 2010 tax year.

Filing dates for income tax returns are normally Oct/Nov each year. Dates vary depending on whether you e-file or paper-file.

PM me if you would like firther details or have fiurther questions.
 
I don't see how my post was unhelpful. He mentioned paying tax on rental income for 2009 so ergo, there will be preliminary tax for 2010.
 
Unhelpful.

Setanta 12,

How was Bronte's advice unhelpful? If I was looking for information on renting out a property I would consider it very helpful if someone made me aware of the preliminary tax requirements. This isn't the first time you have criticised the advice given by another poster and as you can see from the below thread, you would be better served ensuring the accuracy of your own tax advice before commenting on others. Brontes posts re rental property tax are a very useful source of imformation as they come from an actual landlord who has dealt with these issues. Not someone dealing in the theory who would is so quick to criticise others that they don't have time to take out their Taxes Acts!

http://www.askaboutmoney.com/showthread.php?t=126666
 
Back
Top