Question on renting out a house privately.

brandx

If someone lets out a property on a private basis and they are on PAYE (i.e. no need to submit a tax return ) is it solely up to them to advise the taxman of their rental income and what happens if they don't? I'm only curious because I hear of some young people unable to meet their mortgage payments so they move back to their parents and let the property. Obviously this can amount to several thousand pounds a year.

Also, what is the tax payable on a single, private rent?

Jowo_2

brandx wrote: »

Also, what is the tax payable on a single, private rent?

It's up to the individual landlord to submit their own tax return - no-one is going to remind them to do it. Personally, I'd rather initiate this bit of paperwork than get a letter out the blue from HMRC and suffer penalties.

How long is a piece of string really - the tax payable will depend on many factors, including the taxable income left after the deduction of valid deductible expenses like maintenance costs, letting agent costs, mortgage interest.

Landlordzone has got a section on their website that explains about the tax obligations of landlords.

Here is an old article on how the HMRC deal with landlords who don't pay tax, either on the rental income or CGT.


http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article1851885.ece