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
Revealed: How to guard your wealth from Comrade Corbyn!  Daily MailPrime Minister Theresa May survived last week's no-confidence vote in the House of Commons.
How to bag yourself a nest egg with a savings superstore  Daily MailThanks to the extended fallout from the 2008 financial crisis, cash has long lost its title as king in the eyes of savers. But higher interest rates in recent months ...
How to bag yourself a nest egg with a savings superstore  This is MoneyHargreaves Lansdown, Flagstone, Octopus and Raisin currently dominate the cash savings platform market - and, here, we rate them.
Gulf International Bank Uk LTD Continues to Hold Position in Capitalonefi (COF); Saratoga Research & Investment Management Raised Its Holding in Disney Walt Co (DIS) by $4.40 Million  The MoveefySaratoga Research & Investment Management increased its stake in Disney Walt Co (DIS) by 9.71% based on its latest 2018Q3 regulatory filing with the SEC.
QUIZ: How comfortable are YOU financially? (this poll says you need two homes)  South Wales ArgusHAVING savings, being debt-free and going on two holidays a year means you're 'comfortable', according to a study.
Have you met...
Latest Members:


shoessalesis


AASHI


dermavixcream


karenminton


samuel


david john


Nathanloya

 

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