salary and property rental income tax calculator

chloeo

I'm looking to rent my one bed flat out following the death of my partner last year but am struggling to find a calculator online to work out whether I'll cover the mortgage and service charges. Does anyone know of a comprehensive calculator online that I could use to work out my estimated post-tax income including both salary and property income?
I'm currently working part time so paying little tax and NI and none of my student loan - when I put the additional rental income into a standard salary calculator (having taken off 25% of the mortgage interest plus approx. £1500 expenses) it looks like the additional income won't cover the mortgage (let alone the extortionate service charges) as the tax and NI increase a lot and student loan kicks in. However I believe I wouldn't be paying NI on the rental income so this is probably not accurate. Just spoke to HMRC to see if I could do my self assessment online without submitting (to get a rough idea) but I can't get this until April. Just trying to work out if going back to shared accommodation is going to save me any money after all. Any advice greatly received!!

hazyjo

Sorry for your loss.


Not sure how you'll cope if any voids or if there's a large repair bill for the property, or if indeed it ends up trashed if you're struggling to make the figures work.


There won't be a calculator as figures may change month to month.

BoGoF

Do you have permission from your lender?

chloeo

Thanks for both replies. I do have permission from lender yes, and I've just spoken to someone who calculated it vaguely over the phone - I think it'll work out ok if not paying NI on rental income (just on salary). Phew. was getting into a panic then.
Thanks for responding.

need_an_answer

Are you looking at self managing the property or will an agent be involved?

There are potentially lots of other extras you need to cover other than the basic mortgage and service charges have the things like certifications,consent to let from management company(not just mortgage lender),running maintenance all been factored in?


Not meaning to sound defeatist or challenging but if you were worried about needing to pay NI on the income then that suggests that your figures are very tight to make any profit. a run on a few repairs might suggest that actually you could end up paying for the tenants living there.Thats when it becomes an expensive hobby and starts to stop you from moving on with your life.

Can I also be bold and ask why keep the property?
Is there an emotional attachment,if so don't do it until that attachment is no longer there...a tenant I promise you will not cherish your property the way you do,it is a functional living space for them and unlikely to be held in the same esteem that you hold it.
I'm a LL and amongst my properties I have what can be classed as 1 emotional property, however I've always known it would end up a rental and the attachment very much diluted now ...but yes there are odd occasions when it still becomes "my expensive hobby".

Are you trying to hold onto the property because you cant afford to sell it yet,again if so you're not doing this for the right reasons.


Once you let a property you become a LL and to an extent there is a responsibility to your tenants.If you cant say that you want to be a LL really then again step away.Tenants invest money into moving and you need to be able to provide them with that security until they decide otherwise so you really shouldn't go into it thinking its anything less than a longterm commitment.

There are several good LL's here that if you want to post your projections will cast a very fair eye over them if you wish.

Comms69

As others have mentioned, why bother?


One bad tenant and you're likely to end up losing the property


Your budget is simply too tight

Marvel1

Before going into the business, have a read of these threads by G_M, not straight forward as tenant in, income each month.

https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants