Renting advice please

LeroyBoyce

Hello all,

My friend's daughter has had a bit of a rough time of it lately. She's split up with her fiance and has just been made redundant.

She was talking about selling her house (it's all hers, none his) and moving back in with her parents, but I understand she can rent it out for about £1400 pcm!

Now, I'm not sure, but I do think she has no mortgage, due to some inheritance, but I don't wish to pry that deep.

How much tax could she be expected to pay? Could it be a decent source of income for her until she finds a new job?

Any advice muchly appreciated...

Werdnal

Tax liability would depend on her other earnings, and if she is not earning, it would effect any benefits she is entitled to.

However, there is much more to it than "a decent income" as letting holds a lot of unforeseen costs, and if she is not working, she may not have sufficient funds to maintain the property, so it could end up being a problem rather than a benefit! She would need to read up on all the requirements and legal obligations of letting to ensure she understands what she is getting into:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

simpywimpy

If I rent out property and after the allowed expenses of interest, insurance etc (as per HMRC list) and I have 6000 per year profit, would I have to pay tax on that or would it be classed as my income with no tax payable as its less than my allowance?

simpywimpy

Its a hypothetical question really as I was planning on using BTL income as a wage yet I read elsewhere you cant actually do this. I read the HMRC page on expenses but it doesnt mention paying yourself a wage from the income or being able to use your BTLs as a business