Q1. I am taking a lodger in April and the rent will be within the £4,250 allowance. I am on PAYE and haven't filled in a tax form for years. Since there is no tax to pay, do I have to fill in a tax form or inform the Inland Revenue about it? I will also be renting out a new buy to let property which will be completed in August so I will be telling the Inland Revenue at that point this. Is this the right time to inform the Inland Revenue or do I just complete a downloaded tax form?

Arthur Says:

On direct.gov.uk it says:

If you don't normally receive a tax return and your receipts are below the tax-free thresholds for the scheme, the tax exemption is automatic so you don't need to do anything.

This year you will start to receive other rental income so you will have to complete the 'Land & Property' pages of the self assessment return. When you do so, you can tick the first box on page L1.

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