Tax on rental income - 1st year

S

Shakespeare

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Hi
I was wondering if someone in the know, could clarify an issue for me
Situation: Apt rented out for 1st time April 2018 so tax return for 2018 income and profit etc to be completed by end October 2019 for 2018 as part of self-assessment.
2 Questions:
Is there a preliminary payment due for 2018 tax on rental profit before then?
When paying the rental profit tax for 2018, in Oct 2019, do you also have to pay preliminary tax for the 2019 rental profits?

Thanks for your help
 
First question is no. Using the 100% rule on 31st October 2018 you should have nil tax liability. Just make sure that you have no tax liability from any other source. Second question is yes - in October 2019 you will pay your balance of tax for 2018 (which will be the entire liability on the rental income for 2018) and your 2019 preliminary tax liability. Using the 100% your 2019 preliminary tax liability will be 100% of your 2018 liability - so you will be paying your 2018 on the double.

In relation to your 2019 preliminary tax liability you will also have the option of paying 90% of the current (2019 liability). Do the sums and you can pay whichever amount is lower. However in 2018 you only had 8 months of rental income, compared with 12 months in 2019, the 100% prior year option for 2019 may give you a better result.
 
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