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Video instructions and help with filling out and completing What Form 2220 Allowance

Instructions and Help about What Form 2220 Allowance

Music this is one of a series of videos about online self-assessment on your self-assessment tax return you said you have income from UK property over 1,000 pounds including foreign property income this is the section of the tax return you go to don't start filling in this section if you receive income from letting furnished accommodation in your home that amounts to a trade for example you run a guesthouse or offer bed-and-breakfast fill in the self-employment section instead your property is outside the European Economic Area fill in the foreign section your property income was from a partnership fill in the partnership section enter details about your property on these pages this is where you claim any rent a room relief if your income was above the rent a room threshold you make an adjustment for the exempt amount later tell HMRC the amount of property income you received here for jointly let property only put your share use form 17 if you want to change the split of the income you can claim the 1,000 pounds property income allowance here but remember you can't then deduct any expenses against your income see the question mark for further guidance from April 2022 the default basis for calculating your income and expenses is cash basis if you use traditional accounting select YES here otherwise select no UK tax is only taken off if you're a non-resident landlord then your total income from property is calculated this is where you enter your running costs allowable expenses include the cost of repairs where you're restoring an asset to its original condition but not for improvements or upgrades these are a capital expense in the tax year 2017-18 finance costs for residential properties are restricted to 75% the figure you enter here will be 75% of your total residential finance costs and you'll claim a basic rate tax reduction shortly this doesn't affect commercial lessons see the guidance for more details if your total property income is below 85 thousand pounds you don't need to fill in all the boxes add up your expenses and put the total in this box less any loan interest and financial costs these must be entered separately adjustments go here for residential lettings only this is where you claim the cost of replacing domestic items use the question mark for more information if you're claiming rent a room relief but received and more than the threshold enter the exempt amount here the adjusted profit for the year will be calculated for you if there's a profit you must enter any unused losses from earlier years the taxable profit or adjusted loss for display below and the loss to carry forward will be calculated for you enter here the amount of residential finance costs that you couldn't deduct from your expenses for 2017-18 that's 25% of your total enter any other information you feel is needed to support your entries and then check your figures on the final summary screen if you spot an error you can always go back and change it you'll find more help and support and garv goofin webinars and other videos about self-assessment are available from a tmrc thanks for watching.

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