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Reporting rental income

mc25mc25 Well-KnownRegistered Posts: 232
Got a client who has got rental income to be declared. But its below £2500. I know HMRC says if you have got nett amount below £2500 you do not have to complete a SA instead you can do it through PAYE. but I have always tried to complete SA for my clients then this way I can keep track of things. This time since I have only took this client on, and my 64-8 has not yet been received by HMRC, I am panicking i might be late waiting for HMRC to receive the 64-8. Posted it in November and have been chasing it and they said they haven't received it yet and they are about 8weeks behind. Has anyone ever declared other income under 2500 through PAYE and have you ever had any problems, as it stands now these seem the option I Will have to use this time just to be on the safe side, writing to them and advising them of the rental income.

Any views and ideas are welcome.Thanks

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I've not heard of declaring other income through PAYE.

    Is the rental income covered by rent a room relief?

    If you use 3rd party SA software you don't need a 64-8.

    Hope that helps.
  • mc25mc25 Well-Known Registered Posts: 232
    Thanks

    Monsoon, Thanks for your reply. Unfortunately, I haven't got SA software yet due to the number of clients I have got. Have a look at this http://www.hmrc.gov.uk/sa/need-tax-return.htm about the completion of SA> I know you can request hmrc to collect tax throught paye for income less than 2500 but am relactant going this route as i dont what to have problems at later date. If you have dealt with this before let me know your views.

    Thanks
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I know you had to have done a tax return by a certain date to get it collected via the code so I don't know if you have to have notified them that you want it collected this way by the same date??

    I realise you don't have to do a return but is there a deadline for the notification (i.e. end of October)?
  • mc25mc25 Well-Known Registered Posts: 232
    Bluewednesday, thanks for your reply. I didn't know the deadline for that was October.... Grrrrrrrrrrrrr i just hope they will get the 64-8 on systems on time so that I can just do a return.

    Thanks
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    If you get an electronic TR in by 30th December they can adjust a PAYE code to collect the tax.

    I don't believe this excludes a person from completing a tax return though.

    Is the rental income for a lodger in his home or is it from a property that isn't their residence? If its the former then RARR may well apply and no tax will be due.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    PS you can get 3rd party software with a single use for about £15 I think if you can't get the 64-8 back in time.
  • mc25mc25 Well-Known Registered Posts: 232
    Thanks

    Monsoon, Thanks again for your reply. Rental income is from a property which is not their residence. Thanks also for the tip about the software. I hope I will get it sorted soon.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    mc25 wrote: »
    Bluewednesday, thanks for your reply. I didn't know the deadline for that was October.... Grrrrrrrrrrrrr i just hope they will get the 64-8 on systems on time so that I can just do a return.

    Thanks

    I don't know if the notification has the same deadline, it might be worth checking.
  • mc25mc25 Well-Known Registered Posts: 232
    I will definately check, but I am more for doing a tax return then that way I know where I stand with it. Thanks once again.
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