another property - how do i pay taxes

cuppa-cha

i have another propery - at the moment there are freinds living in there for free (they pay the utilities taht they use etc)
they are going to be moving out
i was wandering to get tenants in there
what do i show to inland revenue -
this is income -
how much am i able to earn etc
do i need an accountant?

can i show this as self employment? and how?
all and any advice would be highly appreciated

Rolo_Tomasi

You will have to notify the Revenue when you start to receive an income and you will then have to complete a self assessment tax return to declare the profit that you make each year. This isn't self employment but your profit is calculated in broadly the same way (ie your income less the expenses you incur). If there is a profit then this is added to any other income you have and you will pay tax on this at either 20% or 40%.

The best advice is to ensure that you keep records of all of the properties income and expenditure. You don't have to have an accountant but the self assessment tax return can seem quite daunting if you have never had to complete one before.

HRV

I ve had to do this for the first time this year- it's not too bad
Remember if you have a mortgage you can include the interest payments (but not the repayment part), letting agent fees, tentant finding fees, insurance, ground rent/service charge and maintenance costs etc- keep proof. You submit your costs and your income- you only pay tax on the profit
I ended up recording a loss this tax year :-( which they said may mean I get some tax back on my 'normal' wages
good luck- i didnt need an accountant just read up on the net and follow the self assessment instructions;)

chappers

HRV wrote: »

I ended up recording a loss this tax year :-( which they said may mean I get some tax back on my 'normal' wages

Whoever said this is wrong I'm afraid, losses on rental income cannot be offset against your regular income tax, but can be offset year on year against rental income.