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Tiny Buy to Let ltd company
First house on buy to let and very new to this. I am struggling to match what the instructions on the guide with the boxes I have available when trying to enter the figures. Only income from 1 residential property and definitely making a loss in my first year.
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You're right that our guide doesn't currently explain the property company fields clearly - it's written for trading businesses- we're going to improve this. In the meantime, let me explain how it works for you:
When you select "Property Company" the form labels change:
- Where the guide says "Turnover (Box 145)" → you'll see "Property rental income" - enter your total rent received here - "Interest Income (Box 170)" stays the same - any bank interest earned - "Net trading profits (Box 165)" → becomes "Property business income (Box 190)" - calculated automatically - "Trading loss to carry forward (Box 780)" → becomes "Property loss to carry forward (Box 800)" - calculated automatically
For your first year with a loss:
1. Select "Property Company" at the top of the form 2. Enter your rental income in "Property rental income" 3. Enter your expenses (mortgage interest, repairs, insurance, etc.) in "Other charges" 4. The form will automatically calculate your loss and show it in the "Property Losses" section at the bottom
Quick tip: If you click on any input field, a green tooltip appears explaining exactly what should go there - this is really helpful when you're unsure!
Since you're making a loss in year one, you won't have any corporation tax to pay. The loss will automatically be recorded as available to carry forward to offset against future profits.
Let me know if you have any other questions.