Tax on my rented houses?

J0SH

Thanks, so if my workings are now correct the houses should pretty much pay for them selfs.

total tax= 1908
income from first house= 1860

by the time i have taken off insurance costs, gas safety, any repairs and anything else im allowed, i should be ok and maybe make a few quid

Kynthia

Remember that for tax purposes you are working out your 'taxable profit'. This is your 'property income' less 'allowable expenses' and the rate of tax you pay depends on your other income.

Taxable profit is not the same a 'cash profit'. This is because 'allowable expenses' for tax purposes sometimes differ from the actual out of pocket expenses you have. The repayment element of your mortgage is one example and the 10% wear and tear allowance is another.