Tax on rented flat

wp7135

Hi everyone, I want to rent a flat and I have a question about tax.
Once the mortgage, the agency and maintenance fee are deducted, I have a net income of £3,000 per year.
How much shall I expect to pay on tax? £600?
Or is this revenue added to the revenue I receive from your employment?

[Deleted User]

firstly you need to inform your mortgage co they will probably want to increase the interest rate they charge,assuming you already earn over 10k then the tax will be a minimum of 20% depending on your nominal tax rate

wp7135

Thank you for your reply.
What if the net earing is belo £2,500 per year? Shall I declare it or not?

HappyMJ

wp7135 wrote: »

Thank you for your reply.
What if the net earing is belo £2,500 per year? Shall I declare it or not?

Even though there is no tax due you should declare any unearned income received. You won't need to pay anything but at least it is declared. If you were to declare a loss in one year you could carry that loss forward to another tax year in which you are paying tax. It can save you money.

Marshmallow82

The mortgage payment is not an expense of renting the flat. Only the interest part is.

You need to register as self employed with HMRC. And yes it will be dependant on your other earnings.

HappyMJ

Marshmallow82 wrote: »

The mortgage payment is not an expense of renting the flat. Only the interest part is.

You need to register as self employed with HMRC. And yes it will be dependant on your other earnings.

Owning and managing a rental property is not self employment. There is no need to register as self employed.

sheramber

you do need to register for self assessment and complete Income from Property pages with details of your income and expenditure.

You would also enter details of any other income - earnings, savings interest etc.

Marshmallow82

HappyMJ wrote: »

Owning and managing a rental property is not self employment. There is no need to register as self employed.

Yes it is, it's not PAYE

sheramber

Marshmallow82 wrote: »

Yes it is, it's not PAYE

No, it's income from property- very different from self employed.

leveller2911

sheramber wrote: »

No, it's income from property- very different from self employed.

Not if the OP has a BTL mortgage as they would be running a business. BTL is running a business.

The OP needs to clarify the position but I doubt they will..;)

BigAunty

The Landlordzone website has a section on taxation.

To the OP - this is the benefits forum, you probably meant to post in the saving tax forum on MSE.