Paying tax on rental income?

[Deleted User]

Here is a simple calculation 
Rent charged £1000 a month 
total = £12,000 per year 
Only expenses allowed are eg agents fees, insurance, the gas cert, negligible stationary / phone , repairs, a gardener / cleaner etc if applicable, service charge, ground rent etc 
say £300 a month. 

So PROFIT is £700 a month ( note there are NO deductions for any mortgage interest) 
profit per year = £8,400

That amount is ADDED to your income. 

For any INTEREST you pay on your mortgage ( say for our example £ 6000) you can claim a TAX CREDIT for 20% 
So £1,200 towards your tax bill.
Ok if you are 20% tax payer but pants if you are a higher tax payer = lose big time 

[Deleted User]

AdrianC said:

Crashy_Time said:

whirlyhead said:

Being a B2L landlord is not for the faint hearted, it's a lot of hard work for very little reward.  

Why would people do it in that case?

Because they're deluded, and can't see beyond their preconceptions to the facts and reality.

Not me as I receive £84,000 tax free income 
therefore with my £5716 taxable income and my rental income, the tax credit stops me paying ANY tax and hopefully in Greater London my investment grows in value. Im on my third rental property ( I sell then buy ) 
I’m certainly not deluded but Im defo outside the normal landlord box