First year self-assessment

[NewishLandlord]

I started renting out a property in January 2015. As such, I need to pay tax next month.

Do I need to pay full year of 2015 AND preliminary tax for 2016, or simply pay full year of 2015 and pay 2016 next year?

The section in IT10 about Preliminary Tax is unclear in the language used

 

[Joe_90]

You have to pay the balance of tax for 2015.

You have to pay Preliminary Tax for 2016 but the amount you pay is up to you. In order to avoid interest you should pay either 100% of the 2015 liability or more than 90% of the final 2016 liability.

So in effective you can pay nothing for 2016 now and pay the balance next year and take your chances with the interest if you so wish. Don't know why Revenues system does not automatically calculate interest but I'd imagine it won't be much longer until it does.

 

[NewishLandlord]

You have to pay the balance of tax for 2015.

You have to pay Preliminary Tax for 2016 but the amount you pay is up to you. In order to avoid interest you should pay either 100% of the 2015 liability or more than 90% of the final 2016 liability.

So in effective you can pay nothing for 2016 now and pay the balance next year and take your chances with the interest if you so wish. Don't know why Revenues system does not automatically calculate interest but I'd imagine it won't be much longer until it does.

Thanks.

Will be talking to an accountant, but wanted an idea of the basics before doing so.