Tax credits and declaring rental income

Darksparkle

As per the link:

Deductions in computing profits from Property Income
Generally, expenses can be deducted as long as they are allowable expenses for income tax.

sheramber

Darksparkle wrote: »

As I said, it's always been an issue. But as the links show, the rules are the income tax rules and tax credit follows those. There is plenty of help available to understand those rules and notes available for completing SA. There's only a slight change in relation to tax credits which only came in 2017.

But as the links show, the rules are the income tax rules and tax credit follows those.


No they don't as the first sentence explains
Following changes to tax legislation, the way a person!!!8217;s income tax liability is calculated in respect of their rental income no longer reflects that used for the purposes of tax credits.

Darksparkle

sheramber wrote: »

But as the links show, the rules are the income tax rules and tax credit follows those.


No they don't as the first sentence explains
Following changes to tax legislation, the way a person!!!8217;s income tax liability is calculated in respect of their rental income no longer reflects that used for the purposes of tax credits.

Eh yeah, that's why I said there was a change in 2017 if you read the full post and had already posted the link to show this before you had.

The only difference between tax credits and income tax is how mortgage interest is dealt with. All other deductions are as per the income tax rules.

sheramber

The finance coasts can be more than mortgage interest.

It would include interest on loans to buy furnishings and fees incurred on taking out loans or a mortgage

rachelnash

I have read that landlords can claim a basic rate deduction of 20% of their mortgage interest cost in the 17/18 year. Is this calculated automatically as part of the self assessment or do I have to make a seperate claim somehow? I assumed it was automatic but my bill has come up higher than I was expecting.