Hi
Another tax question for you. This is from the previous tax year 2011/2012.
I rang HMRC and told them I'd made a loss of approx £100 on renting a house out so they said I just needed to send them a letter stating rental income, expenses and profit/loss figure. I did that, then they asked for a breakdown of the expenses so they could agree to the loss figure. So I sent them another letter stating all my expenses (Included in the expenses was approx £300 for mileage). I then received another letter asking me to add my mileage figures to form P87 and send that back to them which I did. They then amended my tax code to include the £300. I heard nothing else after this.
My question is...Is this correct? should I have filled in a P87 to claim tax relief on mileage when I have already claimed it in my expenses. Do any other landlords have to fill in the P87 form for mileage?
I'm no tax expert but it would appear to me that I have now claimed for mileage relief twice. If I removed the mileage amount (£300) from my expenses then I would have made a profit of £200 rather than a loss of £100 so surely HMRC should have taxed me on that amount if they have given me tax relief on the £300.
Does that make any sense to anyone???? I'm busy sorting out the figures for this year and was going to fill in the SA105 form this time even though HMRC havent asked for it but do I still need to fill in a P87 for the mileage again?
A bit confused!!!! I think I'll need to ring HMRC again this year but was just looking for some advice before I ring them (and sit on hold for 45mins!)
Another tax question for you. This is from the previous tax year 2011/2012.
I rang HMRC and told them I'd made a loss of approx £100 on renting a house out so they said I just needed to send them a letter stating rental income, expenses and profit/loss figure. I did that, then they asked for a breakdown of the expenses so they could agree to the loss figure. So I sent them another letter stating all my expenses (Included in the expenses was approx £300 for mileage). I then received another letter asking me to add my mileage figures to form P87 and send that back to them which I did. They then amended my tax code to include the £300. I heard nothing else after this.
My question is...Is this correct? should I have filled in a P87 to claim tax relief on mileage when I have already claimed it in my expenses. Do any other landlords have to fill in the P87 form for mileage?
I'm no tax expert but it would appear to me that I have now claimed for mileage relief twice. If I removed the mileage amount (£300) from my expenses then I would have made a profit of £200 rather than a loss of £100 so surely HMRC should have taxed me on that amount if they have given me tax relief on the £300.
Does that make any sense to anyone???? I'm busy sorting out the figures for this year and was going to fill in the SA105 form this time even though HMRC havent asked for it but do I still need to fill in a P87 for the mileage again?
A bit confused!!!! I think I'll need to ring HMRC again this year but was just looking for some advice before I ring them (and sit on hold for 45mins!)