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15 February 2011
The owner of a buy-to-let property believes the guidance on HMRC’s website means that he does not need to complete a tax return
I am confused! I have always taken the view that a self-assessment tax return needs to be completed by any person who receives untaxed income in the UK.
I have a friend who owns a buy-to-let property that earns rental income of £800 a month and incurs expenses of £600 a month.
He is a higher-rate salaried taxpayer with all tax paid via PAYE so I would expect him to complete a self-assessment tax return and pay tax of £960 a year on the property (i.e. £2 400 profit at 40%).
However he tells me that he checked on the HMRC website and does not have to complete a self-assessment return because his annual income from property (before deducting allowable expenses) is less than £10 000 and after deducting allowable expenses) is less than £2 500.
I checked the website link he gave me and...
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