Tax on property rent

83jack

im thinking about renting my property out because i have had to move away to work - can someone tell me what the tax implications are? i have no idea where to start on this - it is something that im considering instead of my house sitting empty all week!

Thanks for any help anyone can offer

ncooper1974

you need to declare the profit (less expenses - interest payments on mortgage, EA and management fees, maintenance issues, etc) and then pay tax if there is any profit

83jack

Do i need to contact the inland revenue to fill out a specific form??

Euphoria1z

you will need to complete part of the self assesment tax return, so yes youll need to inform the inland revenue at some point.

Jowo_2

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435

But don't just consider the tax implications, think of the worse case scenario of ending up with a tenant that doesn't pay a penny rent and trashes the place which is a lot more expensive than a void. Make sure you do all your research in this area, including how to identify and appoint the best agent.

mlz1413

if you rent a room then you can receive upto £4250 pa without paying tax.

if you rent the house then you pay tax on the profit - ie rent less expenses.

83jack

Thanks for all your advice. Dont really want to rent my house because i only bought it in October and its my first house - but im not living there during the week and spend a few hours there on the weekend! I think renting may be the best way forward. Thanks everyone