Domestic RHI and Income tax

[Mur Huwcun]

I’ve been a bit shocked to be told by accountant that the RHI payments are declared as an income on a self assessment although we only have a domestic RHI scheme. I’m only unfortunate enough to have to do a self assessment due to having a rental property as I work on a PAYE salary based job and pay enough as it is!!

Anyone else in a similar situation? I’ve read the guidelines that clearly states that donestic RHI is not taxable.

 

[pine_guy]

I think you have answered your own question question in reading the rules. And maybe should consider changing accountants. I’ve never declared mine

I’ve been a bit shocked to be told by accountant that the RHI payments are declared as an income on a self assessment although we only have a domestic RHI scheme. I’m only unfortunate enough to have to do a self assessment due to having a rental property as I work on a PAYE salary based job and pay enough as it is!!

Anyone else in a similar situation? I’ve read the guidelines that clearly states that donestic RHI is not taxable.

 

[Mur Huwcun]

I think you have answered your own question question in reading the rules. And maybe should consider changing accountants. I’ve never declared mine

I’m really hopeing that we’re both correct!!! As it stands it’s going to take a huge chunck of the rental income away, nearly to the point of saying what’s the point and selling it

 

[Fogg]

If you're renting the property then I believe the income is taxable.

That's the way it works with FIT on domestic PV, anyway. Whilst I'm living here my FIT is tax free, but if I were to move out and take the FIT with a tenant in situ then I'd be expected to declare that.

 

[Mur Huwcun]

If you're renting the property then I believe the income is taxable.

That's the way it works with FIT on domestic PV, anyway. Whilst I'm living here my FIT is tax free, but if I were to move out and take the FIT with a tenant in situ then I'd be expected to declare that.

The RHI is on our own home, nothing to do with the rental. Unfortunately we fully refurbished the rental property and lived there for two years prior to renting it and therefore costs for the house to go against the income is scarce!!!

 

[farmerdan7618]

The RHI is on our own home, nothing to do with the rental. Unfortunately we fully refurbished the rental property and lived there for two years prior to renting it and therefore costs for the house to go against the income is scarce!!!

Not taxable if it is on your own home, and that home is not being used for business purposes.

Grey area if you are claiming anything such as use of home as office against the rental property.

 

[Exfarmer]

Definitely tax free for RHI and FITs On your own personal domestic property. For FITs this also applies to an array mounted on a farm building but feeding back through your domestic meter. Provided it is no more than 10KW .

 

[blue boy]

So can you claim a portion of RHI as tax free if it heats domestic farm house and also farm workshop ?

 

[Exfarmer]

So can you claim a portion of RHI as tax free if it heats domestic farm house and also farm workshop ?

I think the rule is essentially who paid for it and did you claim the VAT back. If the figures are substantial probably worth speaking to accountant

 

[Fogg]

I'd not go down that route myself, as you're going to find yourself in a quagmire where HMRC might be asking whether you claimed back the VAT and offset expenses against income on the domestic portion of the pellet you've bought, and Ofgem letting you know you get RHI on domestic heat for 7yrs rather than 20.

 

[Exfarmer]

I'd not go down that route myself, as you're going to find yourself in a quagmire where HMRC might be asking whether you claimed back the VAT and offset expenses against income on the domestic portion of the pellet you've bought, and Ofgem letting you know you get RHI on domestic heat for 7yrs rather than 20.

of course if the business pays for the Farmhouse heating , their is a benefit in kind.

 

[blue boy]

of course if the business pays for the Farmhouse heating , their is a benefit in kind.

Might just keep my head down then. lets face it its a pretty good deal so a bit of tax wont hurt