Calculating overpayments without going over penalty clause

lubylu2000

No, they don't have to, that's why I'm registered as a non-resident landlord - I receive the rent tax free. It doesn't mean I wouldn't be eligible to pay any tax in the UK but as this is the only money I earn in the UK I don't think I would go above any thresholds.

saverbuyer

lubylu2000 wrote: »

No, they don't have to, that's why I'm registered as a non-resident landlord - I receive the rent tax free. It doesn't mean I wouldn't be eligible to pay any tax in the UK but as this is the only money I earn in the UK I don't think I would go above any thresholds.

You still have to self-assess at the end of the tax year to determine your liability (if any).

getmore4less

lubylu2000 wrote: »

No, they don't have to, that's why I'm registered as a non-resident landlord - I receive the rent tax free. It doesn't mean I wouldn't be eligible to pay any tax in the UK but as this is the only money I earn in the UK I don't think I would go above any thresholds.

http://www.hmrc.gov.uk/international/nr-landlords.htm

You need to know in case you do have a liability and need to do a SA.
Check with the relevent tax office if unsure.

.........
Back to the actual question.

How long is the restrictions on overpayments, it may be a simple calculator and a regular overpayment will give you the info close enough.
An option to increase payments if you have more than 10% is to reduce the term.

Overpaying being the right thing to do, will depend on the interest rates on this and any other debts/liabilities.

Also make sure you have a cash/income buffer to meet the obligation like maintanence and mortgage if the rent stops.