Is it Ok to Not Declare My Buy to Let Income?
I am thinking of getting a place as residential and buy to let on the side - is this okay not to declare as it will be 20% tax and after all that there will be nothing left to pay for upkeep, maintenance, insurance and mortgage.
It is most certainly not OK not to declare the income! If you are making a profit (however small) you are required to declare it and pay tax on it. If you are making a loss it is in your own interest to declare it as it can be carried forward against future profits on this or any other buy to let properties you may acquire. If you do not already receive an annual self assessment return, you are required to notify HMRC by 5 October after the end of the tax year if you have acquired a source of untaxed income such as a buy to let, so if you start letting the property in this tax year, you mst notify HMRC by 5 October 2010.
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