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
Telegraph.co.uk'Expedia got my name right to charge my credit card £5000 – but wrong on the tickets'Telegraph.co.ukMartyn James, of complaints service Resolver, said: “The difference between the card name and the booking name should have flagged that there was a problem.” David and Mrs Pope's other son, John, began trying to resolve the problem. They have provided ...
Citywire.co.ukSunday Papers: Green plots sell-out to ChineseCitywire.co.uk... part ways with David Glasser, its chief operating officer. Mail on Sunday: The big four banks – HSBC, Barclays, Lloyds and RBS – banking bosses raked in £21 million last year in pay and benefits. The Sunday Telegraph: Mining giant Glencore is ...and more »
Mirror.co.ukSection 75 claims explained - the credit card super power to defeat dodgy tradersMirror.co.ukSection 75 claims explained - the credit card super power to defeat dodgy traders. When you buy goods on your credit card it can give you a very valuable protection, known as a 'section 75 claim'. This is what you need to know. Share; Comments. By ...
The TimesThe key to your new home could be snatched away by the surveyorThe TimesSo you have found the home of your dreams (or stretched your budget to afford more than a parking space), jumped through the hoops required to secure a mortgage and breathed a sigh of relief. You're on the final stretch, right? Not necessarily. Your ...
Have you met...
Latest Members:


shizu


nbammoak


allemande


abnegation


mmotanknba


inlineclosure


machri

 

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