house on rent, tax credits?

mss27511

Hi , ill try to explain my question as easy as possible , as i am looking for a little help

i am looking to buy a house(already seen one to buy) but want to put it on rent, around 475 mark, now i wont see any of this as it will all go to paying mortgage etc. i also work 20 hours pt, married with one 20 m.o son.
i am looking in to tax credits and the like but my question is this : will that rent count as in income as i will not see any of it, and on the tax credit form asking for income above the £300 mark , do i enter this?

as a separate issue, is there a threshold for declaring rental income?what are the rules?

thanks

skater_kat

if you rent your house out this is taxable income which you have to declare

Hammyman

skater_kat wrote: »

if you rent your house out this is taxable income which you have to declare

But remember IT IS ONLY THE PROFIT that is taxable and declarable to HMRC. The profit is rental income minus mortgage interest and any other expenses such as legal fees, landlord gas safety check, landlord buildings insurance etc. If it comes out at a loss, the loss is taken off your PAYE income to give your total income for the year.

I'm more interested in how you think you're going to get a mortgage for it. Mortgages for Buy to Let expect a rental value of AT LEAST 130% of the mortgage interest - i.e if the mortgage interest is £300 a month, the rental value needs to be £390 a month. And as you also need a 25% deposit, where is that money coming from? If it is savings, why haven't you declared them to tax credits?

HappyMJ

Hammyman wrote: »

But remember IT IS ONLY THE PROFIT that is taxable and declarable to HMRC. The profit is rental income minus mortgage interest and any other expenses such as legal fees, landlord gas safety check, landlord buildings insurance etc. If it comes out at a loss, the loss is taken off your PAYE income to give your total income for the year.

I'm more interested in how you think you're going to get a mortgage for it. Mortgages for Buy to Let expect a rental value of AT LEAST 130% of the mortgage interest - i.e if the mortgage interest is £300 a month, the rental value needs to be £390 a month. And as you also need a 25% deposit, where is that money coming from? If it is savings, why haven't you declared them to tax credits?

You can have as much savings as you like and claim tax credits. Strange system.

ManicMum

not totally strange. We both earn a certain wage. You spend all yours and fill your house with luxury items and live the life of riley. I save mine for a rainy day and live modestly. why shd I be penalised? Bit like benefits system. Rewards the !!!!less (some of them as realise some are genuinely on hard times) and penalises the savers.

stroodes

manic , why should i pay ures when you have more dispossible icome than me????????

stroodes

ucome with the n

stroodes

unless you are taking nothing from benefits system

ManicMum

I fail to understand what you are saying Stroodes. Make yourself clearer please!