Do I need to register for self assessment if I have rental income?
posted in Advance Accounting
If the rent received during the tax year was between £2,500 and £9,999 after expenses or £10,000 before expenses then yes, you do have to register for self assessment.
Registration is simple. Complete for form SA1 online at HMRC within six months of year end. That means if you had rental income during the 2014/15 tax year you must register before 5th Oct-15 to avoid being subject to a penalty. If you register late but pay all the tax in time you won’ be charged a penalty. HMRC charge penalties based on your behaviour and is a percentage of potential lost revenue.
| Behaviour | Maximum Penalty | Minimum Penalty with Prompted Disclosure | Minimum Penalty with Unprompted Disclosure |
| Deliberate and concealed | 100% | 50% | 30% |
| Deliberate but not concealed | 70% | 35% | 20% |
| Any other case (notified 12 months or more) |
30% | 20% | 10% |
| Any other case (notified within 12 months) | 30% | 10% | 0% |
