what level of tax do you pay

Willsnarf1983

say for three people at 220 pcm pp not including bill

just a rough % please

thanks

Will

tanith

I think you might have to explain a bit more , are you talking about VAT?

Gorgeous_George

As it is on a renting forum, I guess it is about rental income.

£7,920 annual income.

Less 10% for wear and tear.

So, about 18% in tax for a basic rate taxpayer. Less any other allowances.

GG

Willsnarf1983

no presumably if i am earning it classes a second income so would be taxable ontop of VAT?

Will

Gorgeous_George

I'm lost

If it is rental income, it is added to your other income(s) and you pay tax at whatever rate it falls in. So, if you are a higher rate taxpayer, you pay 40%. If it takes you into the 40% band you pay some at 20% and some at 40% etc.

VAT doesn't come into it.

GG

Willsnarf1983

I'm lost

If it is rental income, it is added to your other income(s) and you pay tax at whatever rate it falls in. So, if you are a higher rate taxpayer, you pay 40%. If it takes you into the 40% band you pay some at 20% and some at 40% etc.

VAT doesn't come into it.

why are you lost, you answered my question perfectly so you must have known what i was on about!

Will