The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Daily MailWhat can a first-time buyer afford around the UK? We reveal what the average £165k budget buys - from a boat in ...Daily MailWith house prices continuing to rise this year, getting on to the property ladder has become even more of a struggle in most parts of the country. But how far your money will go varies wildly across the UK. We've looked at what the average first-time ...
The SunWhat to do if you bought Peter Kay 2018 UK tour tickets? Refunds, rights and returns explainedThe SunCredit cards: If you bought your tickets using a credit card, and spent between £100 and £30,000, you can claim a refund under Section 75 of the Consumer Credit Act. Debit cards: If you paid using a debit card, you may be able to get a refund through ...and more »
Why I am not buying my child Christmas presentsiNewsHow many presents should a child be bought at Christmas? What about for those too young to even understand why they are receiving them? The pressure to bestow children with coveted gadgets and the latest toys on Christmas Day can cost families dearly ...and more »
ReutersUse balance transfers to start 2018 with path to pay off debtReutersThat is because annual percentage rates on credit cards are currently averaging over 16 percent, and outstanding credit card debt is about to hit $1 trillion, said Jill Gonzalez, senior analyst for Wallethub.com, a personal finance site. The average U ...and more »
Have you met...
Latest Members:


wangrui


clibin009


linmangmu


areting


acauos


candywu


kacamata105

 

property letting and taxation

Hi Liz,

I have a question regarding property letting and taxation.

I have recently purchased a flat with a buy to let mortgatage that I have let through an agent. The rental income is £650 a month and the mortgage is £370.0 amonth. Am I correct in thinking that due to the low return less expenses and management charges that I do not need to declare the income for tax purposes ?

Many thanks.

Dear KS,
Sadly the situation may not be that simple. Rent is treated as income and taxed in line with your basic or higher rate tax bands. You can offset the mortgage interest payments, letting agency costs and maintenance expenses again the taxable income. However without knowing all the details of your total income I can only advise you to talk to an accountant. A short one-off interview won’t cost much but will set you on the right path so that you don’t end up with a bill for unpaid tax due.
Your total income from all sources is part of the income tax calculation. If you have earnings from a job and are paying income tax through a PAYE scheme you should declare any other income you on the appropriate pages of the self-assessment tax return – in your case the UK Property pages. If you are self-employed and already pay your income tax through self-assessment then in addition to the basic self-assessment form you should ask for and complete the property pages.
If you aren’t living in the UK you are a non-resident landlord and there is a special scheme for taxing your rental income whereby the letting agent deducts basic rate tax from the rent they collect from your tenants. The letting agent should also take off deductible expenses when working out how much tax to deduct. You can apply to HMRC (Her Majesty’s Revenue and Customs) for ‘approval to receive rents with no tax deducted’. Even if you get that approval and your rent is paid to you without tax being deducted it’s still liable to UK Tax and you must include it in your tax returns to HMRC.
Read more questions ...
Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks