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Ok so i am filing my tax return for my cleaning business and on the property section of tax return i have entered my profits from renting out rooms in my flat however at the end it doesn't add onto my turnover of cleaning business ? i need as my turnover to accumulate funds for my next project but i will just be getting taxed a load more.
Anyone have any idea?
Are you mad! ?
You don't tell HMRC about any income above the RFR Allowance
Do you really believe that HMRC could find out! ?
Course they couldn't!
You need to game the system
How much you earn out of properties you live in is your business.
Forget the RFR Allowance.
Make as much money as you can and don't tell HMRC a thing.
HMRC is very generous they will give you free striped pajamas, with bed and breakfast for "gaming the system". Don't go thinking your Amazon, they stamp on the small guys so the rest of us get the message.
"how will they find out" haha. Maybe one of them registers to vote, gets a phone contract, gets bank statement to the address, the estate agent informs hmrc (as obligated), etc.. etc..
@Ben no idea - an accountant will be able to assist.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
Mate I've been gaming the system since I was about 23.
Indeed had to game the system to obtain my first mortgage in collaboration with a former colleague who happened to have a then wife who was a manager at a Halifax branch!!!!!
For some bizarre reason my Halifax branch wouldn't facilitate the mortgage I needed!!!
I stopped wearing pyjamas when I purchased my first house.
Discovered the delights of a duvet!!!
No way will the system beat me.
My circumstances are so inconsequential as to be not even worth bothering with.
It is my intention to build a loft extension and take on amother lodger
That should be about £17000 tax free as I won't be telling anyone.
There will only be one on the ER
Big Brother Connect has a very long way to go before it catches me out!!!
So I will continue to game the system while living a plausibly blameless life!!!!
Such domestic circumstances as mine are not the norm.
If they were then I can imagine that far more interest would be taken of those circumstances .
But I am such an insignificant person in the overall scheme of things that nobody will take a blind bit of notice in me and my weird domestic set up which has yet to occur!!!!!!
I'l probably be the unlucky one who gets caught ! lol
Hi Ben N I would very seriously recommend that you totally ignore the ridiculous advice suggested by paul_barrett. His suggestion will get you into a lot of trouble for tax fraud. What he doesn't seem to realise is that HMRC have a whole department scouring social media sites such as this one and will be fully aware of the illegal advice he is giving. It is a pity that the site administrators do not block him from the site as he is giving very dangerous advice. In fact HMRC have announced that they will be using social media evidence when undertaking a tax investigation.
My recommendation to you is to speak with your accountant and mortgage broker. The reason being that where I have had clients whose income does not on the face of it tick the lenders boxes then I have written to them explaining what is happening and they are usually satisfied that the appropriate income levels have been achieved.
Nigel Reynolds FCCA CMgr FCMI
Property Tax Specialist
Reynolds and Co
I wouldn't consider any comments as advice unless I was paying for them, even yours. I certainly wouldn't like to see anyone blocked from PT for stating what seems to be common practice. Those that act on those comments are responsible for their actions. I recently paid for advice from an accountant (CTA) who implied similar to Paul's statement - I decided to find another accountant!
I've never claimed rent-a-room allowance, but I'd guess if the income from that is less than the rent-a-room allowance it won't show up in the tax calculation? Is that what is happening?
Claiming rent a room allowance does mean you can't claim all the usual rental allowances on the same property, so there can be cases where people are better off not claiming rent a room allowance, but that would be the exception .
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
The RAR allowance is an exemption up to £7500 pa, after which it can be an allowance. If claimable expenses exceed £7500 you can opt out of the scheme for that year.
Hi Owen , thanks for the reply ,
Thats what i thought at first as i put under £7500 first but then tried putting 15k after and it was still the same .