PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Landlord income tax calculation

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?

Comments

  • Oakdene
    Oakdene Posts: 2,560 Forumite
    1,000 Posts Combo Breaker
    edited 27 October 2016 at 11:24AM
    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
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • 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?
  • 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
    Oakdene Posts: 2,560 Forumite
    1,000 Posts Combo Breaker
    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.
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • Freecall
    Freecall Posts: 1,335 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.
  • 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
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    landlord2016 Posts: 46 Forumite
    edited 28 October 2016 at 12:57PM
    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?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.3K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.2K Spending & Discounts
  • 243.3K Work, Benefits & Business
  • 597.9K Mortgages, Homes & Bills
  • 176.6K Life & Family
  • 256.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.