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Rental Income - Tax calculation
Repromancer
Posts: 40 Forumite
It's my first year as a landlord (2018-19), and was wondering if I got my calculations correct before I submit to HMRC?
Salary before tax = 30,000
Rental Income = 10,000
1k "property allowance" = (1,000)
Finance costs @50% = (4,000)
Total Income = 35,000
Income Tax Calculation
11,850 @ 0% = 0
23,150 @ 20% = £4,630
Less 20% tax reduction for remaining finance costs
4,000 @ 20% = (800)
Final Income Tax = 3,830
Salary before tax = 30,000
Rental Income = 10,000
1k "property allowance" = (1,000)
Finance costs @50% = (4,000)
Total Income = 35,000
Income Tax Calculation
11,850 @ 0% = 0
23,150 @ 20% = £4,630
Less 20% tax reduction for remaining finance costs
4,000 @ 20% = (800)
Final Income Tax = 3,830
0
Comments
-
did you read the rules for the property allowance?
you cannot claim financing costs if you are also claiming the allowance...
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income0 -
Your finance costs seem high?
Remember it's only the interest you can claim a % of0
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