Do you rent out a property?
If so, you have an obligation to report the property income and expenses to HMRC.
There are a number of things to consider when doing this.
You need to tell HMRC that you are receiving income from a property by January 31, after the end of the tax year in which the income is received.
You may also need to complete a tax return, in which case HMRC will notify you of the need to file a return.
However, if you have PAYE earnings, you may be able to have any tax due collected via an adjustment to your PAYE code.
Even if you make a loss, it is to your advantage to report this to HMRC.
Many people do not realise this and only start reporting the income when they break into profit.
Without reporting the rental losses, you are losing out on being able to set these losses against future income from property, meaning that you will pay more tax than you should.
So if you register these losses now, you will be able to take them forward and offset them in future years