Rental Income - What can be claimed for?

harrispb

Hello Everyone,

I have a couple of properties and because my repayments have gone down on these properties due to Bank of England base rate it looks as though I will be making more profit on these properties this year.

Could anyone tell me what I am able to claim for in order to reduce this profit? For example collection costs etc.

Finally how much am I able to earn from rental income before I have to pay tax?

Thank you for your help and Happy New Year

BitterAndTwisted

You pay income tax on all of the rental income less the interest on the mortgage and other allowable expenses. Have you received no advice from an accountant?

harrispb

Thanks for the reply!

Can you give me some examples of allowable expenses.

My accountant has let me down, however I have all of the details to complete a self assessment myself. My New Years resolution is to get clued up and to start to take control of my finances.

Thanks again

G_M

Since you appear to have a (serious?) gap in your knowledge in the tax area, I suspect you may lack knowledge elsewhere too. Get a good book on property letting, like this one, and find out about tax as well as many other things.

For detail on tax specifically try HMRC here. Getting a few odd tips here from posters, all of whom will offer a bit of advice, is not enough. You need the complete picture.

clutton_2

property tribes is an excellent landlords forum whihc has a couple of accountants posting regularly on there. The inland revenue used to do free days courses for the newly self employed - they are useful learning tools.

tbs624

OP - all the info that you need is available direct from HMRC and it is pretty straightforward. Google Property Income Manual and the Land & Property guidance pages plus SA105. See also DirectGov's pages on property letting.

If there is anything that is not clear to you just ring HMRC and ask the question.