I am looking for a little bit of advice that will point me in the right direction with regard to self-assessment and tax declaration.
I guarantee that any help and advice I receive will be greatly appreciated.
My wife and I jointly purchased a house, renovated it and our tenant moved in Oct 22nd 2012 – so has been there 3 months.
My wages just take me into the higher rate tax bracket, my wife is a full time mum!
Now I’ve seen a date of 31st Oct mentioned regarding tax-returns but apparently this is extended to 31st Jan if filling in the forms online.
Q1 – Am I correct in that this year’s self-assessment online deadline of Jan 2013 is based on the financial year Apr 2011 -> Apr 2012 and seeing as though my tenant moved in on 22nd Oct 2012 I will do a self-assessment in Jan 2014 for this and do not need to worry about it this year?
Q2 – Obviously I want to pay as little tax as possible on the rental income and so basically want my wife to ‘take’ the income and not me as anything I ‘take’ will be taxed at 40% and what my wife ‘takes’ will be basically tax free (the rental income will be less than 6k PA and so will be well within her tax allowance). So basically my question is can I allocate her to take all of the income or do I need take some or is it basically a 50/50 split?
Q3 – Will my wife also have to declare any rental income via self-assessment?
Q4 – I’ve heard that there are a few things you can claim for and offset against the rent for tax purposes (phone calls, travel expenses, etc?) and that you don’t need any ‘proof’ of these – is this correct and if so are they fixed amounts?
Q5 – Is it worth just getting an accountant to sort all of this out for me…? , I know, I know, some of you will be saying “well if you can’t be bothered to do it yourself then don’t…”. Well I can, it’s just that I’ve never done self-assessment before or anything and it seems a little daunting. I don’t want to get it wrong and owe a load of tax. It is relatively only a small amount of money but, like all of you other landlords, I want to get as much money out of it as I can – I know I worked hard enough renovating the property and want it to be worth my while…
As I stated before, I really do appreciate the time any of you will take in replying to my questions.