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How much will I pay?
v6wrx
Posts: 19 Forumite
in Cutting tax
I'm looking to rent my property out and was just asking to see what kind of tax I will pay, monthly rent will be around £500pcm. Im employed and earn less than 20k per year. Any advice be great.
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Comments
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what costs will you offset against your rental income?0
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Letting agent fees which is 10% of the rent per month also there setting up fee £150. The only other fee I think I will have is the gas certificate £90 per year. Is a mortgage and insurance a offset?
Thanks0 -
Yes - if there is a mortgage relating to the property, the interest on the mortgage is deductible, along with any repair costs, insurance, utility bills you pay. If the property is furnished you can deduct 10% of the rent as wear and tear allowance.
Essentially, you deduct all these outgoings from your £500 income, and then you will pay tax at 20% on the resulting profit.
Hope this helps0
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