Landlord income tax calculation

landlord2016

I buy property September and rent October 2016.

Ownership :Husband Wife Joint tenant

When need to submit tax return ?
January 2018?

Can I use mortgage interest as expenses?

Oakdene

Yes online return due 31/01/18 (seems an age away!!).

Yes, only the interest element of your mortgage payment can be offset against your income. https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income#allowable-expenses

landlord2016

Many thanks for the reply.

When need to register for self employed as Landlord.

I am working as a full time Job & also running a small limited company. Do I need to register again as self employed?

Bluebirdman_of_Alcathays

Do you earn over or close to the higher rate threshold? If so you cannot claim the full amount in mortgage interest relief. It will be restricted to a flat rate of 20% for higher earners, although there are transitional rules in place for the next few years. It is complicated.


If you are running a limited company, does an accountant not handle your accounts preparation? They will be able to help with your property queries.

Oakdene

If you have multiple sources of income the higher tax bracket threshold may come into play, without figures its hard to advise.

If you have already made a self assessment return, you simply add the details of your rental income & allowable expenses to your return.

Freecall

landlord2016 wrote: »

Many thanks for the reply.

When need to register for self employed as Landlord.

I am working as a full time Job & also running a small limited company. Do I need to register again as self employed?

You don't need to register as self employed just because you have investment income from letting a property.

Any income derived from the letting (less costs) should simply be declared on your self-assessment return.

As there are two of you, this will apply to each of your returns.

landlord2016

After search online ,I found this which may help others.

Inform HMRC that you are receiving property income by 5 October following the end of the tax year in which you received the income. The UK tax year runs from 6 April to 5 April the following year. Therefore, if you rented out your property on 1 March 2013, you would need to inform HMRC by 5 October 2013. If you do not do this you may be charged a penalty.(taxeezy website)

G_M

landlord2016 wrote: »

I buy property September and rent October 2016.

It seems a bit late to be asking.

Sure - you have plenty of time before you need to declare anything to HMRC, but finding out about your tax liabilities should really have been done before deciding if this business venture was viable or for you.

I hope you've researched other aspects of the business earlier and more fully..........

See:

* Tenancies in Eng/Wales: Guides for landlords and tenants

landlord2016

Thanks for all reply.

Is there any change for mortgage interst tax relief.
Please give example
Job income yearly 30,000 before tax
rent yearly 8400
mortgage interest 2700 yearly
yearly mintaince 2000
Wife not working

In future ,mortgage interest is not get tax relief?