Gransnet forums

Legal, pensions and money

Page 1 of 1
Flip | Customise

tax code - new landlord

(5 Posts)
Add comment | Report
Polarbear2 Sun 31-Oct-21 11:10:09

I’m retired and have a small personal pension. I own a house but live with my partner. My son lives in my house and since he got his life sorted has been paying me rent. I realised I should declare this. It’ll be about 4K pa. It just tips me into paying tax - which I understand- but I’d thought that at the year end I could do a self assessment and, once I know what I can claim for (I don’t at the moment as I can’t seem to find out), it’d probably bring me back under my current ‘code’.
Unfortunately the tax office have immediately reduced my code so I’m now paying tax on my pension. It’s not a lot but I’m confused. How can they decide now what I owe when it’s an unknown? My son could move out and I’d get no rent. Or I could move back. ?
I called them but got little joy. She just kept asking the same question which I can’t answer as I don’t know what my gross will be. I’m new at this. He’s only been paying since April this year. She said a ‘technician’ would call but they haven’t.
Any advice welcome. Feeling I wish I’d never said anything. Amazing they can get to me instantly but the rich guys get away with it. (Sorry my grumpy socialist side coming out).

Add comment | Report
Germanshepherdsmum Sun 31-Oct-21 11:22:38

Perhaps consult an accountant? They will know exactly what you can and can’t offset against rent. It’s always said that they should be able to save you more tax than their fee.

Add comment | Report
Peasblossom Sun 31-Oct-21 12:21:59

I’m in a similar position to you having moved in with my partner and let my house. Not to a relative though.

If you go onto HMRC and sign up for self assessment then at the end of each year you fill in the form for calculation of what you owe for the previous tax year and pay.

I found it very straight forward.

They’ seem to be taking tax at the moment based on what they think you’ll need to pay but that’s because you haven’t signed up for self assessment. Do it ASAP.

You will get it back. Unfortunately because it’s from this April it might not be till the next Tax year. I don’t know how that will work.

Really important to get on top of your expenses too.

Pm me if you think my experience will help.

Add comment | Report
GagaJo Sun 31-Oct-21 12:57:40

I have a flat I rent out and do a self assessment every year. I'm no accountant but I can manage it ok.

Give HMRC a call and tell them you want to self assess.

If you do an online search for SA100 and SA105, those are two of the main forms you'll need to complete.

Add comment | Report
Polarbear2 Sun 31-Oct-21 17:05:21

Thanks all for the replies. Am on track now ?

Page 1 of 1
Flip | Customise