Self assessment - buy to let & PAYE ???

[Googlecanthelpme]

I’m having a right brain fog moment and I’m struggling to work out the answer to this - can anyone with either experience of it themselves or qualified in the area help with a little direction…

I have a BTL property which has only been active during this past year so I’ve never had to do a self assessment on it (or any other additional earnings) before.
The self assessment isn’t a problem as seems straight forward enough, however I’m curious on how the tax is managed.

I have a perm job which uses PAYE - standard tax rate.
The BTL in an ordinary year might take me over 50k combined with my PAYE but will not this year as property was vacant for quite a while and had a lot of refresh work done, so the income will only be a small amount and my expenses far outweigh it.
So essentially I’m in a loss for the BTL (was expected and is fine).

My question is - I understand I can carry as a loss for next year but how does it actually work?

Does it get lumped in with my PAYE and tax code to reflect?
Does it stay totally separate to PAYE?

Does it just sit on my self assessment account as a sort of tax credit for next period?

I’ve had a Google and lots of help to get it all completed but not much help on what happens once it’s submitted, if you’ve had a loss.

Sorry if this is blooming obvious and I’m missing something simple!

The BTL is carried forward and you can then use it against your future BTL profits. It's completely separate and nothing to do with your PAYE.

You could pay an accountant to complete your self assessment tax return for you for your BTL

The deadline is 31 Jan each year if you are in UK

Are you sure you will be at a loss? Remember that you cant deduct for renewals, only repairs and maintenance.

@Kazplus2

Are you sure you will be at a loss? Remember that you cant deduct for renewals, only repairs and maintenance.

Yes you can, it's improvements you can't claim for.

I don't think you can claim the refurb/repair at the start of the letting business, only if there is a tenant in there when you do it. You better get an accountant to do this for you.

If your profits will be below £2500 (once allowable costs are taken off) you can contact HMRC and they will say you don’t need to do a tax return, but they will adjust your PAYE code.

This often applies to people in their first year who don’t have a full year on rental income, plus might have incurred lots of allowable costs.

@ClarasZoo

I don't think you can claim the refurb/repair at the start of the letting business, only if there is a tenant in there when you do it. You better get an accountant to do this for you.

You can if the property is in a habitable state and "could" be rented in that state before any repairs/updates are done. The disallowance is where you buy a wreck that needs work doing before you "could" rent it out, where your purchase price was significantly reduced because it wasn't in a habitable state. Repairs on an uninhabitable house are capital in nature to reflect the lower price you paid.