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Rental Income - Tax?
Tayus
Posts: 313 Forumite
in Cutting tax
Hi peeps,
Quick one....
I started renting out a property in December 2009 and receive the rent on a monthly basis. I have kept a record of every payment and need to know how i pay tax on this? and when??
Many thanks
Quick one....
I started renting out a property in December 2009 and receive the rent on a monthly basis. I have kept a record of every payment and need to know how i pay tax on this? and when??
Many thanks
Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.
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Comments
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I would inform HM Revenue and Customs so that they can issue you with a tax return in April 2010- If you don't already receive one that is.
The tax return if filed online needs completing by 31 Jan 2011 and that's when any payment of tax is also due.
Don't forget to deduct any allowable expenses regarding the rental as this will reduce any payment you have to pay but make sure you keep the receipts as proof.0 -
Any idea as to roughly how much tax i will pay? I receive £425.00 per month.Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.0
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When you do your self assessment tax return, the rate you pay will depend on your other income (probably 20% unless you already have other sources of income that have mopped up your personal allowance & your standard rate band 20% thus propelling you into 40% additional rate band of income.) As a rule of thumb I would put aside 30% for tax and repairs & expenses (eg heating gives up - water main bursts, you have to go to court to get rid of a non paying tenant etc.:eek:)
Are you paying a mortgage on the property - the interest element of the mortgage is allowable as an expense against income.
Is this a furnished letting - if it is you can claim 10% tax free for wear and tear as an alternative to keeping accounts of everything you spend on keeping the letting up to standard.0 -
Thanks for the replies!
I'm not paying a mortgage on the property and it is rented as unfurnished however i have bought blinds for the windows and a new carpet, can i claim this back?Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.0 -
Thanks for the replies!
I'm not paying a mortgage on the property and it is rented as unfurnished however i have bought blinds for the windows and a new carpet, can i claim this back?
are you paying a mortgage of any sort... to claim interest as a cost of renting, the mortgage doesn't have to be on the rental property but could for eaxample be on your main home.0 -
I have bought blinds for the windows and a new carpet, can i claim this back?
Yes, they should be an allowable expense and thus, you should not pay tax on this amount.
As mentioned before, you can claim a 10% wear and tear allowance or, the actual expenses. If you incurred any cost for advertising the room/property for rent etc then this should be allowable aswell.0 -
sorry, the 10% wont be allowed as its unfurnished. why cant the carpets be deductable?0
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The orginal cost of the carpets is not tax deductible, but if the carpets are renewed during the rental period, then the replacement cost will be tax deductible0
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Hi guys,
I've just received a bill from the management company for the maintainence of the grounds/buildings etc that my apartment is on. Can I claim anything back for this?Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.0 -
Yes, the management fees are allowable, as are agents fees, insurance, repairs and redecoration - anything which relates to the upkeep of the flat.£705,000 raised by client groups in the past 18 mths :beer:0
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