going self employed

[mandimoo]

i have a full time job and my tax is taken automatically. i am considering renting my house out as i have moved in with boyfriend. i realise i have to declare this income but wonder if i can be self employed, for the purpose of my rental 'business' (so i can claim some tax back perhaps) at the same time as being PAYE?

[Twenty20]

You wouldnt be self employed as well as PAYE. All you need do is declare your income, expenses etc for tax purposes. You will probably get tax relief etc on the mortgage interest and other expenses on the house that you let.

It can save you money to use an accountant if you have more complex tax affairs.

[Im a BusyBee]

You can carry on as you are but at the end of each tax year fill in a self assessment form including the supplementary "Land + Property" pages. This is treated separately and you can off set mortgage interest and other related expenses against the rental income. If you have made a loss on property rental then tick the box to carry it forward to next year.

[Im a BusyBee]

just an after thought - it is quite possible that you will liable to capital gains tax should you sell the property in a while without actually living in it again. Any profit made on the sale less your allowance (in the region of 8k) could mean tax payable at 40% !

[hev]

You can be registered as self employed as well as PAYE. You will need to register with HMRC and complete a tax return each year. If there is no other income other than property and employment it is fairly straightforward. and you will probably not need an accountant. All HMRC forms are printed with a helpline number if you need help completing the forms. Always keep any receipts for expenses relating to the up keep of your property and any thing you claim for on your tax form, because if this is checked on an enquiry then you will have to prove your figures.