Automatic overpayment to offset BTL

TrickyDicky101

There is no Rentaroom allowance on buy to let business so all profits are taxable.

you can only offset the interest element of your mortgage repayments - not an issue if you have an interest only vehicle but does need to be taken into account if it is repayment

scottishblondie

kiridoh wrote: »

So say for example I pay £10k mortgage and get £11k rent, will I have to pay taxes on £1k? I thought there was a threshold of about £4k or so?

I think you need to do a lot more reading up on this. There is plenty of information on the HMRC website.

Thrugelmir

kiridoh wrote: »

So say for example I pay £10k mortgage and get £11k rent, will I have to pay taxes on £1k? I thought there was a threshold of about £4k or so?

Only the interest is tax deductible not the capital repayment.

So if £4k of the £10k is capital. Then only £6k will allowed against the rental income. Making £5k taxable.

This could result in ownership of the property being cash negative.

Few people ever consider how the capital on a BTL mortgage will ever get repaid. Instead banking on property prices for ever rising as they have done in the recent past.

getmore4less

Get an offset mortgage if one exists or BTL.

hotcat40

Having problems with my mortgage firm we took out mortgage with did their own paperwork / discrepancies on disbursement statements and there are 2 company charged me a mortgage payment before name change over on land registry and the list is endless

kiridoh

Thrugelmir wrote: »

Only the interest is tax deductible not the capital repayment.

So if £4k of the £10k is capital. Then only £6k will allowed against the rental income. Making £5k taxable.

This could result in ownership of the property being cash negative.

Few people ever consider how the capital on a BTL mortgage will ever get repaid. Instead banking on property prices for ever rising as they have done in the recent past.

Being the first time I am landlord, is there any professional accounting service specifically tailored to look after this aspect?

somethingcorporate

Have a look on the HMRC website, it is all on there.

dimbo61

You are better off overpaying the mortgage on your home rather than the rental property.
Get an accountant and the fee they charge is Tax deductible