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Income from Rental property tax
Cjane1978
Posts: 1 Newbie
Hi
we have a property that we rent out that although brings in £1050 a month we only make £200 a month profit after the mortgage and costs/ tax, I fully understand that with the change in the way that the mortgage can no longer be offset against the rental income but we are now being punished twice, so here’s our problem, we have 2 children and have been receiving child tax credit, although we have a second property we were almost forced into it or we would loose the house we were looking at because we couldn’t sell ours at the time, we don’t have a massive income, last year we were receiving £300 a month tax credit, at this time we were unaware in this change of rules, now I don’t really have a problem with the tax side of it but the problem I have is that now the full rental income has been added to my annual income putting a further £12600 a year on my income, even though we never see a penny of this, we have now had to declare this as our income and it has almost doubled our income, we haven’t had our results back yet but we have a strong feeling that we will need to pay the £300 a month back that we have received due to this, surely this can’t be right? Sorry for the long post but has anyone else come across this or have any advice please
many thanks
we have a property that we rent out that although brings in £1050 a month we only make £200 a month profit after the mortgage and costs/ tax, I fully understand that with the change in the way that the mortgage can no longer be offset against the rental income but we are now being punished twice, so here’s our problem, we have 2 children and have been receiving child tax credit, although we have a second property we were almost forced into it or we would loose the house we were looking at because we couldn’t sell ours at the time, we don’t have a massive income, last year we were receiving £300 a month tax credit, at this time we were unaware in this change of rules, now I don’t really have a problem with the tax side of it but the problem I have is that now the full rental income has been added to my annual income putting a further £12600 a year on my income, even though we never see a penny of this, we have now had to declare this as our income and it has almost doubled our income, we haven’t had our results back yet but we have a strong feeling that we will need to pay the £300 a month back that we have received due to this, surely this can’t be right? Sorry for the long post but has anyone else come across this or have any advice please
many thanks
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