Discussion in 'Army Pay, Claims & JPA' started by fangy1, Feb 25, 2008.

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  1. I have been trawling though ARSSE hoping to see an answer to this, no luck. I am in BFG and we are approaching the end of the tax year.

    I have our house in Winchester rented out for £1200 pcm so I was aiming off for paying a huge wad in tax (less deductable allowances) at the end of the financial year.

    However, people I’ve spoken to in similar circumstances say that they haven’t had a tax return in previous years and so haven’t had to pay anything yet. I’m sure I am due to pay something on this rental income but it certainly seems unclear reading this site.

    Do we not receive a tax return automatically or are we supposed to apply for them ? I’m tempted to keep what I think I owe on deposit until HMRC contact me & I pay them (hopefully they never will suss it)

    Your thoughts/experiences welcomed.
  2. Fangy1
    A few words of caution. I was in a similar spot to yourself whilst in Germany last year and had to make great inroads to sort it out.

    When serving overseas, your Letting Agency (if you have one) are remitted to inform the HMRC that you are out of the country. If you have not signed and submitted a NRL1 (Non Resisdents Letting form 1) to say that you will sort out your own tax by submitting annual tax returns, then the agency are legally bound to deduct 22% at source. When my letting agency got audited by the HMRC, it was picked up and I had to submit the NRL1 form myself, then the tax returns swiftly followed for the back 2 years I missed.

    Even though you have not received a Tax return (I did not, as my Agency never informed the HMRC I was letting the property), it is your duty to inform the HMRC that you have extra income over and above your earnings. You may be lucky and get away with this for a while. But if your letting agency get Audited by the HMRC (like mine did), it will get picked up and you will be submitting retrospective tax returns, expected to pay fixed fines of £100 per year missed and interest on the Tax you may owe the HMRC.

    Hope it helps
  3. elovabloke

    elovabloke LE Moderator

    You are responsable. There are a whole host of things you may be able to claim to lesson the pain.

    Cost of trip to UK to check on property and agency x 1 per year.
    Any repair & decoration costs.

    and much more.
  4. I would if I was you get an accountant who will guide you on all the expenses you can claim on your tax. as you ar liable for tax on the income from your property.

  5. Elovabloke
    Can you confirm this one please, as I was told that by letting your property through an Agency nullifies this one. They say that the agency are paid to manage the property on your behalf.

    "Cost of trip to UK to check on property and agency x 1 per year."

    If this is true, then I guess I have missed out on 2 years worth, Ho Hum!!!!
  6. elovabloke

    elovabloke LE Moderator

    I did it through the late 80's and early 90's and never was questioned (included reciepts). But as some already says - have a quick word with an accountant who will put you straight. No need to keep one on but half hour consultancy always worth the dosh. Or you could take up golf and get free advise from one on a course near you.
  7. Sound advice. I paid a firm of accountants to do all my summs nad provide me with a pre printed sheet which I slipped in my Tax Return. 10% of thevalue of the contents is offsettable as depreciation too. You agents may be able to do this too, though in my case the independents were cheaper. In the 5 years I rented the agency paid the income tax direct to the tax man and one year I got £600 back, one year I owed them £21 and the rest were refunds of a few quid.
  8. Lifted from the HMR&C site
    HM Armed Forces personnel and other Crown Servants
    The Non-resident Landlords Scheme applies to members of HM Armed Forces and other Crown Servants - for example, diplomats - if they have a 'usual place of abode' outside the UK. They are treated no differently from any other non-resident landlords, even though their employment duties overseas are treated as performed in the UK for the purpose of charging their salaries to tax. So if their absence from the UK is for more than 6 months, they are within the scheme.

    Members of HM Armed Forces and other Crown Servants are dealt with by HMIT Public Department 1 and South Wales Area office. The addresses are:

    Public Department 1
    Ty Glas Road
    CF14 5XZ

    Telephone: 029 20325048
    Fax: 029 20325954

    South Wales Area office
    Ty Glas Road
    CF14 5YA

    Telephone: 029 20325363
    Fax: 029 20325957

    Give em a bell
  9. I to rent out my property as well whilst in BFG. Everything that people have advised you on is spot on advice. People think that the TAX man will contact you when you start renting out. This I did by pure luck after reading a small article in a well known paper a few years ago. The only advice I can give is that you are recieving just enough to cover your mortgage & not to make a large wad, as most do. Also you don't need an accountant to do your tax return as it is quite easy & can now be done on line. Just make sure the letting agency are sending you all the bills for repairs & mandantory inspections, gas/electric, as you will include these in your outgoings along with the insurance, letting fees & the mortgage. If I can do it so can anybody & since Elevablerk knows me very well, he can vouch for me. Last bit of advice, give them a bell, they are very understanding & will know if you are trying to bullsh*t them :D