Declaration of UK rental income - tax forms changed!

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limousinlady
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Declaration of UK rental income - tax forms changed!

Post by limousinlady » Mon Apr 23, 2018 11:14 am

The tax forms have changed yet again. Can anyone advise where they are declaring their UK rental income please.

Debra
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Re: Declaration of UK rental income - tax forms changed!

Post by Debra » Tue Apr 24, 2018 2:17 am

I didn't notice any change. Gross amount in 4BE, 4BK if you're declaring micro fonciere and net amount is reported in 4BA, 4BL if you're declaring reel (form 2044 gives details) plus the relevant amount in 8TK for both and also section 6 of the 2047 form.

What did you think had changed? I haven't seen the paper form, only the forms generated after doing an online return.

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Re: Declaration of UK rental income - tax forms changed!

Post by limousinlady » Tue Apr 24, 2018 9:05 am

Debra, thanks for your reply. Last year we followed The Connection advice and everything went through ok.( I know not everyone agrees with them) This year we are having trouble selecting the correct rubrique for annexes to start with and when completing form 2047 we put the figures in and then they have disappeared when we have printed the forms.

Can you tell me what the allowance is for declaring micro-fonciere? Last tax year we had set up costs as well as all the usual ground rents/service charges for a flat and I dont think the allowance covered them? I thought form 2044 had changed. Last year we completed boxes 4BA and 4BL but didn't submit a breakdown. Does that mean we have to continue that way this year?

I will go online later and try again :? Perhaps I can pm you if it doesn't work out. I know my explanation is not very clear!

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Re: Declaration of UK rental income - tax forms changed!

Post by Veem » Tue Apr 24, 2018 9:27 am

Limousinlady, please post anything you find out on this thread as it will doubtless be of interest to me too. Thanks.

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Re: Declaration of UK rental income - tax forms changed!

Post by Debra » Tue Apr 24, 2018 5:59 pm

If you complete form 4BA and 4BL you have to complete form 2044. You enter the gross amount there and then the detail of the expenses and it tots it all up and gives the net amount, which is then reported into 4BA and 4BL. You have to specify exact details of costs and names of artisans who did the work so I don't think the tax office would be happy if you neglected that stage (but maybe they didn't quibble if it didn't affect any French taxable income).

Microfonciere has a 30% allowance for expenses so with that you just put the gross amount in 4BE and 4BK and it comes through on your avis d'impots as 70% of what you put.

The choice is between declaring gross and getting a set allowance so you don't have to detail your expenses or declaring gross and detailing all your expenses so the net amount is reported onto your main form. You can't mix and match the two methods and just put a net amount on the main form. You're supposed to keep records of the expenses detailed on form 2044 too, as you need to back up what you've declared if you have a financial control.

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Re: Declaration of UK rental income - tax forms changed!

Post by Debra » Tue Apr 24, 2018 6:01 pm

I've seen the Connexion Guide on two of the years I've declared and each time it had bad errors in it and I believe one of the main ones was about how you just declare net income. That's not the case. You always declare gross income and the tax office applies whatever tax allowance or tax credits you are due. In the 2016 guide they didn't understand the changes on the form and were telling people to perhaps put UK taxable pension income or UK rental income in the exempt income box, which is totally wrong!
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limousinlady (Tue Apr 24, 2018 6:26 pm)

zane10
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Re: Declaration of UK rental income - tax forms changed!

Post by zane10 » Fri Nov 30, 2018 8:09 am

Hello,
I have been renting out my flat since October 2010 while I'm studying elsewhere in the country and so far have not completed a self-assessment form for the HMRC. I would like to get to get this addressed as it may be that the flat will continue to be rented for a few more years, and I'd obviously not like to suffer the consequences of a huge tax bill or fine down the line.

Could you advise me about the best way of going about it. I understand there is a "short" self-assessment form which I can fill out online but what about the previous year/s? Will I incur a huge fine for not declaring it earlier, and is there such a thing as a landlord amnesty, or is that wishful thinking?

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Re: Declaration of UK rental income - tax forms changed!

Post by Joinfrance » Fri Nov 30, 2018 3:10 pm

Zane10
If you really haven’t filled in a tax return for the last 8 years you could be in trouble.
I have a similar declaration to do and it’s not difficult except that I get flustered, so
Can’t answer your question as usually I phone a U.K. tax office and they tell me which numbers to put in which box. They have always been very helpful. I think you might consider doing the same thing. The numbers are on the webpage. It’s usually a fairly short call.
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PatF (Fri Nov 30, 2018 3:58 pm)

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Re: Declaration of UK rental income - tax forms changed!

Post by PatF » Fri Nov 30, 2018 4:03 pm

That's what I was thinking, Jo.
Online returns to HMRC should be in before end of Jan. 2019.
Zane - it's not clear what you mean. You are resident in France and are renting out a flat in the UK? And having the rent paid direct into your bank account (UK or French.)?
Do you send in a french tax return?
You don't have to answer any of these questions

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Re: Declaration of UK rental income - tax forms changed!

Post by buzz » Fri Nov 30, 2018 4:43 pm

There may be different categories of landlord but I have a friend who rents out a property in the UK, and I have listened to him moaning at length about a raft of new legislation affecting private landlords, or affecting him at least. A whole list of regular inspections that have to be done plus he seemed to think he would have to go on a course and get a licence to carry on renting the house out. In the end he decided to go through a rental agency because if you use a letting agent you don't have to comply with the regulations personally, the agency takes care of it. Maybe you should check this out before you pop your head above the parapet.

EDIT - found this, I guess this is what he is talking about and it seems to vary from region to region
https://www.theguardian.com/money/2018/ ... -landlords

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