Archived News June, 2012

Tax questions Carmarthen Journal 20th June 2012

Last year we purchased a house, which we wanted to let out. However, we were unable to rent it out until this month due a substantial amount of work we had to do. Even though we have had no rental income, can we claim tax relief on the expenses incurred prior to letting out the property? 

When you first begin to run a rental business, you are able to claim expenses that you have incurred since you have owned it (up to 7 years) against the rental income. To claim tax relief on the expenses, they would need to be the type of expenditure that would have been allowed if it had occurred after the rental business had started e.g. repairs, decoration etc. It is important to keep records, receipts or invoices in case HM Revenue & Customs ask for the documentation.

I recently received a PAYE coding notice through the post for 2012-2013, but it includes pension contributions I no longer pay and private medical insurance which I have cancelled. What should I do?

A PAYE coding notice informs your employer/pension provider of how much tax to take from your income. It is important that it is correct, as too much tax could be taken from you. If you think it is wrong then you should speak to your accountant (if you have one) or ring HM Revenue & Customs on 0845 300 0627 them wrong items. HMRC should then forward an amended notice to your employer/pension provider, which should hopefully be correct.



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